non spousal inherited IRA
I have a client that inherited and IRA form parent just in June 17…to avoid the 5 year tax consequence, and have the IRA distributed based on RMds for the first year for the mom and the second year for the beneficiary, how to go about letting the IRS know this is the plan, what time frame and forms needed to do this?
Permalink Submitted by Alan - IRA critic on Thu, 2017-09-14 00:28
If Mom was taking RMDs, she likely passed after her required beginning date and the 5 year rule never applies in that situation. Life expectancy beneficiary RMDs would need to begin no later than 12/31/2018, but Mom’s uncompleted year of death RMD should be distributed by 12/31/2017 if possible. The IRS does not need any notification beyond reporting the 1099R reported distributions on Form 1040, line 15. There is no other form to file with the tax return. If Mom passed prior to her RBD, there is no year of death RMD required for 2017.