RMD from DB plan in year of death after RBD
Must the beneficicary take the RMD by 12/31 if the DB account owner died this year (after his RBD) and had yet to take the RMD for the year?
Thanks,
Ralpert
Must the beneficicary take the RMD by 12/31 if the DB account owner died this year (after his RBD) and had yet to take the RMD for the year?
Thanks,
Ralpert
Permalink Submitted by Alan Spross on Fri, 2007-12-07 04:21
They should take it prior to year end.
If they fail to do that, then they are in the position of requesting the IRS to excuse the 2007 excess accumulation penalty. The IRS would most likely excuse it for a new beneficiary making a proper request, but no sense in intentionally subjecting oneself to having to process a formal request.
He would also have two RMDs in the following year if the one for the year of death is not taken prior to year end. That could affect the tax bracket.