RMD after death.– Who receives???
When the owner of an traditional IRA who is old enough to be taking RMD dies they must withdraw the balance of the RMD in the year that they die.
Question, for RMD after death, who do the RMD amount belong to? The estate or to the named beneficiaries.
Permalink Submitted by Ben Meyer on Sun, 2016-09-11 21:17
After death the IRA belongs solely to the beneficiaries. The estate and the personal representative or executor of the estate have no formal role in the IRA, unless the estate is a beneficiary. Frequently the executor or personal representative may perform an informal role in regard to the IRA, in communicating and coordinating the transfers to beneficiaries.
Permalink Submitted by David Mertz on Sun, 2016-09-11 22:26
Regarding the RMD, it’s the responsibility of the designated beneficiaries to satisfy any portion of the year-of-death RMD not satisfied by the deceased before death, and is reportable on the tax return of the designated beneficiary(s) receiving the distribution. The estate of the deceased is not entitled to any distribution from the IRA unless the estate is the beneficiary of some or all of the IRA.