Deadline for after-death RMD
Dad died at 75 in Oct 2017, but hadn’t taken RMD yet. Daughter named as beneficiary. How long the does daughter have to take Dad’s RMD for 2017? She’ll take her RMD as Beneficiary next year 12/31/2018.
You are correct. The IRS is well aware that it take time to determine the decedent’s RMD status, identify all the accounts and have IRAs retitled in beneficiary form. Therefore, if the year of death RMD is not completed this year by the daughter she IRS will grant her a penalty waiver if she properly files Form 5329 and includes an explanation for the cause of the shortfall. Since Dad’s death was late in the year, the IRS will almost certainly waive the penalty. She cannot file the 5329 until she has made up the shortfall and can state such with the 5329 note of explanation. The year of death RMD and also her own beneficiary RMD due by 12/31/2018 will both be taxable in 2018 and reportable on her tax return.
Permalink Submitted by Kevin Dempsey on Tue, 2017-12-19 22:42
Another thought… what if Dad dies on 12/25/17 but normally takes his RMD on 12/31/17? There must be some time for the beneficiary to take out Dad’s RMD.