Late year death – IRA RMD
T-IRA owner, > 70.5 died late this year
Owner did not take RMD prior to passing
IRA custodian is telling the non spouse beneficiary they may not be able to process the 2015 RMD before year end
Does the IRS offer any guidance in this area?
Who would the IRS assess the 50% penalty? It can’t be the owner as he passed. Does the penalty (assuming its assessed) pass to the beneficiary?
Thank you
Permalink Submitted by Alan - IRA critic on Mon, 2015-12-28 19:47
See other thread. Highly unlikely the IRS would assess a penalty if the non spouse beneficiary files a 5329 requesting an exception for reasonable cause for 2015. He should take the RMD ASAP in 2016 so that the 5329 waiver request includes evidence that he took the year of death RMD as soon as possible.