Missed Bene. IRA RMD for 2016
Hello. Have a client who has a Bene. IRA with another broker dealer, and he wants to transfer it to me. I asked him if he has received RMD’s from the IRA each year. No, he didn’t think so. The only RMD he may have received was his Dad’s in the year of his death, but nothing since. They are working with the B/D to take his 2017 RMD. How should we handle his 2016 RMD? Want to get this resolved before we transfer his Bene, IRA to us.
Permalink Submitted by Alan - IRA critic on Mon, 2017-03-06 20:57
Any missing beneficiary RMDs need to be distributed and Form 5329 filed to request the waiver of the penalty for each year. This can be done after the transfer is made or before, but some research will be required to determine how many years RMDs were missed and what the prior year end value was for each of those years so the respective RMDs can be calculated. The 2017 RMD can also be taken before or after the transfer.