beneficiary deadline for RMD
80 yearold IRA owner dies; what is the deadline for RMD to child-beneficiary? one year from date of death or December 31st of calendar year after last RMD to decedent?
80 yearold IRA owner dies; what is the deadline for RMD to child-beneficiary? one year from date of death or December 31st of calendar year after last RMD to decedent?
Permalink Submitted by Alan Spross on Mon, 2010-08-30 16:54
Beneficiary’s own RMD must be distributed by 12/31 of the year following the year of the owner’s death.
For owner’s passing after their RBD as in this case, if the owner had not satisfied their RMD for the year of death (or prior years) prior to passing, that RMD should be distributed to the beneficiary by the end of the year owner passed. However, in most cases when the RMD status is not determined by year end, the beneficiary should take it as soon as discovered and request that the penalty be waived for reasonable cause on Form 5329. The IRS almost always waives the penalty.