RMD start date and bene RMD

Submitted by Terry Murphy on Sat, 2023-09-16 14:26

The Facts

IRA owner DOB 12/25/1949 date of death 11/27/2022

Non-spouse Bene DOB 7/23/1973

Was the original owner required to take an RMD since he passed away before his 73rd birthday. He was 72 in 2022 but his start date is actually 4/1/2023 (correct) ?

If that is true, would his bene be able to forego distributions prior to the 10th year?



Submitted by Alan - IRA critic on Sat, 2023-09-16 14:57

  • Owner’s RMD age is 72, therefore the first RMD year is 2021 with an RBD of 4/1/2022, and he passed after his RBD. The beneficiary will have to take annual RMDs based on their single life expectancy starting this year, and drain the account by the end of 2032 (unless the beneficiary is an EDB).  His actual age on the RBD date being either 72 or 73 does not matter. His attained age in 2022 determines the RBD date. Further, since owner passed after RBD, the beneficiary is responsible for completing the owner’s 2022 RMD if owner did not do so.
  • The annual RMDs are not actually a negative, since they will somewhat spread out the taxable income and eliminate such a large distribution in 2032 that could spike beneficiary’s marginal tax rate. 

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