last rmd
The rmd that must come out for decedent in year of death….
Is this taxable income to benefiiary… to decedents last income tax return .. is it IRD?
Thanks for any help.
The rmd that must come out for decedent in year of death….
Is this taxable income to benefiiary… to decedents last income tax return .. is it IRD?
Thanks for any help.
Permalink Submitted by Alan Spross on Fri, 2008-12-05 22:50
Chuck,
It IS IRD, and is paid, reported and taxable to the beneficiary. It does not go on the final return of the decedent, and is only paid to the estate if the estate is the named or default beneficiary.
If decedent had any basis (Form 8606) in the IRA, the beneficiary inherits their share, making a portion of beneficiary distributions tax free.