Inheried IRA missed RMD
Parent dies at age 90 in late 2015 (after account onwer’s RMD had been distributed for 2015) and son inherits two IRA annuities. He cashes out one ($25,000) and income tax was paid on it in 2015 return.
Request for RMD for the second one doesn’t get processed by company before 1/1/17. Is there some way to factor in the distribution that was taken in 2015, which was well in excess of the RMD for 2016.?
Permalink Submitted by Alan - IRA critic on Sun, 2017-02-19 00:46
No. Amounts distributed in a year in excess of the RMD can never be credited toward later year RMDs. Son must distribute both his 2016 beneficiary RMD and 2017 beneficiary RMD this year. He should file Form 5329 and request a penalty waiver for the 2016 RMD being late. The instructions for completing the 5329 are on the last page of the 5329 Inst.