Partial RMD taken before death
We have a client receiving monthly RMD distributions from his IRA, total RMD for 2014 $10664.24. Client has passed away this month and has only satisfied 10k of his RMD.
Can we request to send the remaining $665 to his bank account or can we have the spouse satisfy the RMD when the funds are moved into her IRA or Beneficiary IRA?
Permalink Submitted by Alan - IRA critic on Fri, 2014-05-16 15:52
The beneficiary of his IRA must complete the year of death RMD. Any further distributions must go to the beneficiary and not to the estate unless the estate IS the beneficiary. A beneficiary can either complete the RMD before a separate account is created or afterward from the separate account. The RMD balance will be taxable to the beneficiary, but for a spouse that usually means on the final joint return for the year of death.