Minor IRA BDA Question

Submitted by Kevin O'Hearn on Wed, 2020-08-12 14:28

Hello,

If a minor inherits a an IRA BDA from her Dad who dies in 2019 and never took the 20190 RMD. Is the minor on the hook for the missed RMD? This is also an IRA BDA that has multiple beneficiaries so would the current IRA BDA owner be on the hook for any previous missed RMD’s?

Any guidance would be greatly appreciated. Thank you.



Submitted by Alan - IRA critic on Wed, 2020-08-12 15:21

  • Your post indicates that the minor inherited an IRA that was already an inherited IRA with her Dad as beneficiary. Further, it appears that separate inherited IRA accounts were not established by several of these beneficiaries meaning that the 2019 RMD was based on the oldest of the remaining beneficiaries. If so, minor is responsible for completing the year of death RMD that her Dad would have been responsible for (his share).  Minor is not responsible for missed RMDs for years prior to 2019 or for the year of death RMDs for any prior IRA owner or other beneficiaries.
  • This is a mess. Minor should provide documentation as successor beneficiary, then transfer minor’s share to a separate inherited IRA account.  This will not change the amount of beneficiary RMDs for years after 2020, but will make administration of the account much simpler.

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