RMD Year of Death
Client, age 75, died in 2014. Client had not taken her RMD before she died. Her two kids (in their 40’s) are the primary beneficiaries. One kid has rolled over their 1/2 share to an inherited IRA account but has not yet taken a distribution/RMD. The other beneficiary has not yet rolled over their 1/2 share to an inherited IRA account.
Are the two kids required to take an RMD in 2014?
If yes, is the amount of the RMD that each kid must take in 2014 the deceased IRA owner’s RMD for 2014? Or something else?
Thanks!
Permalink Submitted by Alan - IRA critic on Sat, 2014-06-21 01:26
The year of death RMD should be taken by 12/31/2014 and is the RMD amount had the deceased lived to year end. However, that RMD does not have to be taken 50-50 by each beneficiary. Therefore, if one beneficiary does not need the money and the other does need it, the one that needs it can satisfy the entire RMD. Since one inherited IRA has already been established, it will take effective communication between the two to make sure the RMD is completed.