IRA Owner dies before receiving full RMD now what
IRA owner died in 2015 before receiving full 2015 RMD. Beneficiaries, following attorneys’ advice, did not request beneficiary stretch until June 2016. What are the rules regarding the missed 2015 RMD?
Permalink Submitted by Alan - IRA critic on Fri, 2016-07-29 18:25
The year of death RMD can be completed in any combination between the beneficiaries. While it should have been completed in 2015, the IRS will likely grant a penalty waiver if the beneficiaries each file a 2015 Form 5329 and indicate the “reasonable cause” for the delay and that the year of death RMD has been completed. If one of them does not take any of the year of death RMD because the others took more than their share, they should only file the 5329 if the IRS contacts them or if they think the others may not have actually completed the year of death RMD. Note that not determining the status of the year of death RMD for awhile is typical, particularly if the owner passed late in the year, so the IRS typically waives the penalty with the 5329 filing.