Year of Death RMD/Cares Act
Hello,
If an account owner (age 80) is deceased in late 2020, are Year of Death RMDs handled differently under Cares Act?
The account owner had 3 IRA accounts:
Account #1 RMD was satisfied in 2020 before death.
Accounts #2 and #3 RMDs were waived in 2020. Are the RMDs still waived in the event of death in 2020?
Thank you.
Permalink Submitted by Alan - IRA critic on Thu, 2020-10-29 21:55
Yes, RMDs for 2020 are waived for everyone including owners, decedents and beneficiaries. In your example, the IRA owner had the chance to roll back the Acct 1 distribution up to 8/31. The executor cannot do it unless the beneficiary is the surviving spouse, if any. Since 2020 RMDs are waived the beneficiary is not responsible for completing the 2020 year of death RMD.