RMD
If an individual recieved a death benefit IRA transfer from her deceased sister this year is she liable
or obligated to take an rmd for 2021 no rmd was taken last year and since the IRA was not transfered
until this year no letter was sent to the new IRA owner showing the fair market value and the amount
she had to take in 2021 the sister died in 2020
Permalink Submitted by Alan - IRA critic on Mon, 2021-11-22 21:04
Perhaps the individual is less than 10 years younger than her sister and is an EDB (eligible designated beneficiary) who qualifies for the life expectancy stretch. As such she would have to find out the 12/31/2020 IRA value for her share of the IRA from which to determine her 2021 beneficiary RMD. She might check with the IRA custodian or whoever has access to account statements or Form 5498. If there is an executor, they might have this information. However, if it takes more time to determine the correct RMD and it is not distributed until next year, the IRS will waive the penalty with a properly filed Form 5329 with the individual’s 2021 return. Or the 5329 can be filed separately after the 2021 RMD has been determined and distributed.