Beneficiary IRA – missed RMD’s
I just met with a prospective client who inherited an IRA from her deceased mother 17 years ago and has never taken an RMD. I would think that someone would have said something along the way. Were the RMD laws different back in 1999? If so, could she be grandfathered in to the previous rules? Or does she have to take 17 years of RMD’s and file the appropriate paperwork with the IRS?
The client is about to turn 58, if it helps. She was 41 when her mom died.
Permalink Submitted by Alan - IRA critic on Fri, 2016-06-24 20:28
If her mother passed prior to her RBD, under the pre 2003 rules, the 5 year rule was the default for non spouse beneficiaries. That means the IRA should have been drained by 12/31/2004. She should take a full distribution and then file a 2004 5329 requesting that the penalty be waived. If mother passed after the RBD, then she is looking at a 5329 for every year but 2009.