Missed Inherited IRA distribution
Female, 8/25/53 inherited father’s Ira. He did his rmd for 2020. He passed 2020. What does she need to do as far as withdrawal/penalties? Thanks
Female, 8/25/53 inherited father’s Ira. He did his rmd for 2020. He passed 2020. What does she need to do as far as withdrawal/penalties? Thanks
Permalink Submitted by Alan - IRA critic on Sat, 2023-03-04 17:24
She is subject to the 10 year rule unless disabled. The IRS proposed Regs require annual RMDs in years 1-9 (2021 to 2029 for her), but because the Regs are not yet final, they have waived any penalties for 2021 and 2022 RMD shortfalls. Per the proposed Regs she will have to start beneficiary RMDs this year through 2029 and drain the inherited IRA by 2030. Her single life table divisor for 2023 will be 18.4, and that divisor is reduced by 1.0 each year thereafter.
Permalink Submitted by Stephen Hodson on Sat, 2023-03-18 14:50
How can I get an updated version of the table used for RMD calculation?
Permalink Submitted by Renee Grey on Tue, 2023-03-14 13:53
I’m trying to hand calcuate an RMD on an beneficiary IRA since finding an online calculator that incorporates the IRS Notice 2022-53 is still a challenge. Original owner’s DOB 12/16/1942 & DOD 11/27/2021. Designated beneficiary DOB 6/17/1990 elected 10-year payout, has not yet taken any RMD. What factor on the single life table would I start with) And is this the table to use for the Single Life Expectancy Table? https://irahelp.com/printable/2022-single-life-expectancy-table
Permalink Submitted by Alan - IRA critic on Tue, 2023-03-14 14:30
Yes, the single life table applies here. The 2022 divisor (age 32) would have been 53.4, but the IRS has waived the penalty for not taking the 2022 RMD. The divisor will then reduce by 1.0 for each year thereafter, with the 2023 divisor being 52.4 and the 2023 RMD due by 12/31/2023 using the 12/31/2022 inherited IRA balance. Also, note that if the original owner did not complete their 2021 RMD before passing, the beneficiary was responsible for completing it by 12/31/2021. If not done, this RMD (of the owner for 2021) must be distributed and Form 5329 filed for 2021 to request a penalty waiver for being late.
Permalink Submitted by Stephen Hodson on Sat, 2023-03-18 14:57
Never mind. Thanks
Permalink Submitted by Stephen Hodson on Sat, 2023-03-18 15:04
The owner died in 2020 and took his rmds. The non-spousal beneficiary was 68 in 2021 and her factor was 20.4. The factor is now 18.4. Does she use the IRA balance as of 12/31/2022?
Permalink Submitted by Alan - IRA critic on Sat, 2023-03-18 15:40
Yes. The inherited IRA balance on 12/31/2022 divided by 18.4.