RMDs year of death
Deceased IRA owner (age 84) has 2007 RMDs taken out monthly up to his death on Sept. 30 2007. How do the remaining 2007 RMDs get paid if beneficiary IRAs are for two kids?
Deceased IRA owner (age 84) has 2007 RMDs taken out monthly up to his death on Sept. 30 2007. How do the remaining 2007 RMDs get paid if beneficiary IRAs are for two kids?
Permalink Submitted by Alan Spross on Sat, 2007-11-24 21:30
Each beneficiary should take 1/2 of the remaining RMD of their father prior to year end. It will be issued to and taxable to each beneficiary. Their own RMDs start in 2008, and the deadline for them to create separate accounts for RMD purposes is 12/31/08.
The IRS does not actually care which beneficiary takes the RMD if they do not want to each take 1/2, as long as the correct total is distributed. But taking an equal amount reduces accounting work to make sure that each beneficiary actually receives 1/2 the inherited account value when the separate accounts are created.