Decedent RMD

Submitted by M decker on Thu, 2024-10-24 17:46

A client passed in 2023. There is an IRA with an old, old REIT (no value) and less than a hundred dollars in it that hasn’t been retitled to the beneficiaries because none of them wants to deal with an unvalued REIT that would have to be split 4 ways. How does 2024 RMD work in this situation? Do the benes have to take RMD for 2024?  It’s only $2.91.



Submitted by Alan - IRA critic on Thu, 2024-10-24 18:29

Who is the IRA custodian? They should have determined a value for all holdings and accepted the death cert for client to create inherited IRAs for each beneficiary. The beneficiaries could take the RMD from other assets if there are any, but with respect to the RMD, the IRS is not going to care about such a small amount.

Submitted by M decker on Thu, 2024-10-24 20:28

All other assets in the IRA were distributed, this one REIT stayed in the decedent IRA because none of the beneficiaries would claim the holding.

Submitted by Kevin Brown on Sun, 2024-10-27 14:15

M decker;  The custodian should have a process to remove the worthless asset.  Morgan Stanley did that for me on a couple assets in my account. That will let the custodian close the account to get it off their system.  Of course, each custodian has different rules and none seem to make anything easy 🙂

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