Both Decedent and Beneficiary failed to take RMD
The decedent, in his 80s, died before taking his RMD in 2008.
The beneficiary, his daughter, didn’t do anything until September, 2009. Before September 30, 2009 the beneficiary went to the bank and completed the paperwork to bring things up to date and take the required distribution–and moved the IRA into a new “decedent’s IRA” for her benefit. The beneficiary is in her late 50s.
On what form is the 2008 RMD reported? Amended decedent’s 1040? Decedent’s Estate 1041? Beneficiary’s 2009 1040?
Thanks
R
Permalink Submitted by Alan Spross on Thu, 2009-11-05 03:18
Beneficiary’s 2009 1040.
Beneficiary should also file a stand alone 5329 for 2008 requesting that the 2008 excess accumulation penalty be excused for “reasonable cause” per the Inst. for Form 5329, p 6. The cause might be something such as “Owner died late in year and IRA not located until following year” or “delay in coordination of estate detail” etc. You probably get the picture. The statement should also state the amount and date the 2008 RMD was taken out. The IRS almost always waives the penalty.