RMDs when IRA is frozen by probate
My uncle died last year and left his assets to family members. He did not name beneficiaries for his IRA, which is now frozen by probate. Therefore we are unable to make the RMD distribution on his IRA until we are through probate. Is there any way to avoid the IRS penalty for not making an RMD in this case?
Permalink Submitted by Alan - IRA critic on Mon, 2016-03-28 21:59
In what manner is the executor limited, and by what statute?
Permalink Submitted by Bruce Steiner on Mon, 2016-03-28 22:21
What do you mean by “frozen by probate”? The executor may take distributions, and may distribute the inherited IRA in kind. If there’s a Will contest, or for some reason the Will hasn’t yet been admitted to probate, it should be possible to get a preliminary executor (the title may vary from state to state) appointed, who can take distributions from the IRA (but not make distributions to the beneficiaries of the estate). If not, then when an executor is appointed he/she should be able to get the penalty waived for reasonable cause.