Year of death RMD possible after reregistration to Inherited IRA?
Is taking the Year of Death RMD only possible BEFORE reregistration to an inherited IRA? If the year of death RMD were to be distributed after reregistration, would the IRS take it to mean that the beneficiary was taking an RMD?
From what I’ve read, because the inherited IRA clearly shows who the original owner is, the IRS would deem any year of death distribution coming from it as correctly attributed. But I want to be certain and I don’t see that address in any of the IRS information.
Permalink Submitted by Alan - IRA critic on Wed, 2021-06-30 22:14
The year of death RMD can only be made to the beneficiary after re titling the IRA as inherited. The beneficiary will not have a beneficiary RMD due in the year of death. Sometimes it takes time to work things out and both the year of death RMD and the beneficiary RMD are distributed in the year after the year of death. In that case, a 5329 will need to be filed by the beneficiary for the death requesting waiver of the penalty, but the IRS will grant the waiver. In addition, completion of the year of death RMD to the beneficiary does not void a disclaimer by the beneficiary should they wish to disclaim.