Deceased beneficary of inherited IRA
Mom, in RMD status, died in Feb. 2017 prior to taking RMD. Son named as primary beneficiary, died in April 2017, prior to taking mom’s RMD. Wife of son is beneficiary of son’s inherited IRA. 2017 RMD will be paid, it is paid and taxed to son’s estate or paid and taxed to wife of son as beneficiary of son’s inherited IRA? Thank you.
Permalink Submitted by Alan - IRA critic on Wed, 2017-11-22 20:21
The RMD and any other distributions are taxed to the recipient, which will be the wife. The 1099R will show the SSN of that recipient who will also report the distribution on their own tax return. With son passing so soon, it is good that he was able to name his wife as his successor beneficiary on the IRA, otherwise the IRA would have gone to his estate. Note that son’s wife will have to compute beneficiary RMDs starting in 2018 using the age SON would have attained by 12/31/2018, and then reducing that divisor by 1.0 for each year after 2018. Wife’s age is not a factor.