RMD2008
Issues!!!
IRA owner who had been taking regular RMD’s is deceased 2008. No RMD taken yet for 2008. If multiple beneficiaries split the IRA in 2008, what are deadlines for 2008 RMD and whose life expectancy will be used?? What about withdrawals in future years???
Permalink Submitted by Alan Spross on Thu, 2008-04-17 23:05
The beneficiaries must take the decedent’s 2008 RMD by 12/31/08 as if the owner lived to year end. They can split this up as they wish between them. In other words, if one beneficiary does not want to take a distribution, it can be made up by another for 2008. They each should name their own successor beneficiary ASAP, and also check to see if the decedent had any remaining basis in the IRA at death which would be passed to the beneficiaries.
Starting in 2009 each beneficiary must take their individual RMD based on each beneficiary’s age attained in 2009 by 12/31/09. The divisor each one uses in 2009 will be reduced by 1.0 for each successive year.