First RMD from Inherited IRA
Owner of IRA above RMD age dies. Beneficiary claims money without taking out the RMD first, all gets moved to beneficiary IRA. Beneficiary must immediately take out the entire outstanding RMD correct? Or can they take it in any format they want over the course of the calendar year? Thanks
Permalink Submitted by Alan - IRA critic on Wed, 2019-03-20 16:35
The beneficiary can complete the year of death RMD by 12/31 of the year of death from the beneficiary IRA account. If completed after the year of death, Form 5329 must be filed to request waiver of the penalty and this is expected by the IRS and they will waive the penalty. Again, there is no requirement to complete the year of death RMD prior to transferring the inherited IRA account to a new account or new custodian.