Deceased Client RMD
80 yr old client died last month and had not taken RMD for this year. Daughter is beneficiary. Brokerage firm says acct is now frozen and cannot distribute RMD but can rollover to daughter bene IRA and daughter can take out mother’s RMD. Question is daughter will get the 1099 and will she have to pay tax at her much higher rate? How can she apply the distribution to mother’s income for last 2013 tax return? TA
Permalink Submitted by Alan - IRA critic on Tue, 2013-02-12 20:27
Daughter must distribute mother’s 2013 RMD before the end of the year, but all post death distributions are taxable and reportable by the recipient (daughter). She will receive the 1099R. In this case, the tax rate will apparently be higher as a result, but that is unavoidable.