Beginning Beneficiary Distributions
If an RMD-eligible individual passes away during the year and has not satisfied their RMD yet, is a non-spouse beneficiary required to fulfill the remainder of the decedent’s RMD during that same year?
If an RMD-eligible individual passes away during the year and has not satisfied their RMD yet, is a non-spouse beneficiary required to fulfill the remainder of the decedent’s RMD during that same year?
Permalink Submitted by Alan - IRA critic on Mon, 2023-11-13 21:26
The beneficiary must complete the year of death RMD, but the Secure Act extends the due date for that to the tax filing date for the year of death plus extensions.
Permalink Submitted by Andrea Fuchs on Tue, 2023-11-14 20:21
What if there are multiple beneficiaries? Are each of them required to take a proportionate amount of the decedent’s remaining RMD?
Permalink Submitted by Alan - IRA critic on Tue, 2023-11-14 22:56
No, if all the IRA beneficiaries are the same for all of decedent’s IRA accounts, they can take the year of death RMD in any combination. The more beneficiaries there are, the more likely it is that at least one of them will want to take a larger distribution than just their share.