correction
(My original post stated individual was still working when he died but that was not accurate.)
78 yr old individual died in early 2021 several weeks after retirement. His wife was beneficiary of his 401k, and one of his TIRA’s. he had a small TIRA that the estate was beneficiary of. His wife rolled the 401k and TIRA account balance to her TIRA. As understand there is an RMD due based on the 401k balance as of 12-31-2020. My question is will the distribution of the small TIRA to the estate count toward RMD requirement?
Permalink Submitted by Alan - IRA critic on Wed, 2021-08-18 23:09
The 401k year of death RMD question is very date dependent. If he passed prior to 4/1/2021, then he passed prior to his RBD whether he retired in 2020 or 2021 and there would be no year of death RMD for the 401k for 2021. But the IRA is different as he passed after his RBD for the IRA. Therefore, if the IRA 2021 RMD was not distributed, his wife must complete his 2021 IRA RMD before the end of 2021. It sounds like the wife did the spousal rollover to her own IRA (probably as the sole beneficiary under his will), and therefore no distribution out of the inherited IRA has been made.