December 31 Deadline (RMDs for Year of Death)
Is the December 31st deadline to withdraw a Decedent’s final RMD: 1. the date that the check must be written and distributed from the financial institution – OR – 2. the date that the check must be deposited into the beneficiary’s account?
Permalink Submitted by Alan - IRA critic on Tue, 2016-12-20 16:15
The date the check is reported distributed as that determines whether a 1099R will be issued in that year. In many circumstances it is not possible for a beneficiary to sort through the RMD situation, particularly for deaths late in the year. Some beneficiaries are not even aware they inherited an IRA for several months. Further, in order to determine whether the year of death RMD has been completed, a beneficiary must be aware of all IRAs of the owner including those the beneficiary did not inherit. Coordination with other beneficiaries is also needed since the year of death RMD can be completed in any combination between the beneficiaries. Accordingly, if the year of death RMD is not determined and distributed in the death year, the IRS will usually waive the penalty with a properly filed Form 5329.
Permalink Submitted by Kate Constantino on Wed, 2016-12-21 14:09
Thank you.