Minors Required to Take RMDs?
Minor Children of clients have received inherited IRAs from a grandfather. They are required to take RMD’s from the accounts?
Minor Children of clients have received inherited IRAs from a grandfather. They are required to take RMD’s from the accounts?
Permalink Submitted by Alan Spross on Thu, 2011-12-15 18:37
Yes. It is also possible that the RMD income could trigger the kiddie tax since it is considered the child’s investment income.
Permalink Submitted by Randy Brunson on Thu, 2011-12-15 18:51
It appears they may not have taken distributions for 09 and 10. Remedies?
Permalink Submitted by Alan Spross on Thu, 2011-12-15 19:11
No RMDs required in 2009. For 2010, they can either make up the RMD now and request the IRS to waive the penalty on Form 5329, or if the amount is small enough just pay the 50% penalty on a 5329 for 2010.