RMD in year of death after beginning date
Multiple beneficiaries none of which is a spouse. IRA participant was past age of required distributions and had not taken RMD in year of death. Do all beneficiaries have to take distribution based on their pro rata portion of the inheritance? Two of the beneficiaries are taking lump sum distributions of their entire amount. Can this serve to lower year of death RMD amount for other beneficiaries?
Thanks
Permalink Submitted by Alan - IRA critic on Tue, 2017-12-26 19:53
The year of death RMD can be completed in any combination by the beneficiaries if the owner did not complete it. Therefore, when one beneficiary takes a lump sum distribution, that usually is enough to satisfy the entire year of death RMD shortfall and relieve the other beneficiaries from taking a distribution until the year their beneficiary RMDs begin.