Incomplete RMD at Death/Disclaimer
IRA owner died in September before meeting her full RMD for year. Her 2 sons are beneficiaries. One son may disclaim his share–deadline to disclaim is in 2009. However, decedent’s remaining 2008 RMD must be satisfied by beneficiaries before Dec 31. Can one of the beneficiaries take distribution for the full outstanding RMD amount? If the remaining RMD amount must be split across both beneficiaries, there is a conflict for the son contemplating disclaiming. In order to disclaim, he must not benefit from the dollars. How is this dealt with? Thank you for the information!
Permalink Submitted by Alan Spross on Mon, 2008-10-20 19:51
This problem was resolved 3 years ago with IRS Revenue Ruling 2005-36 following.
Although the entire RMD balance can be issued to just one beneficiary, if this creates an accounting problem with the IRA custodian, it can still be issued to each, and the disclaimer will be valid according to the RR.
http://www.irs.gov/irb/2005-26_IRB/ar11.html