IRA beneficiary is an estate
Deceased widow named her Estate as a beneficiary. Probate was held up for over a
year due to a few wills found after death. She took monthly RMD’s until death but
was short by $10,000 for the year. Does the estate have until September 15th of the
year following the deceased’s death to make the balance due on the RMD or will it be penalized for late payment.
Permalink Submitted by Alan - IRA critic on Tue, 2015-08-11 18:48
The remaining amount of the year of death RMD should be completed by the end of that year. However, the IRS will waive the penalty for almost any reasonable cause such as this one. There is no established deadline date once the year of death ends. The delinquent RMD must be completed ASAP and before filing the 5329 requesting the penalty waiver.