Permalink Submitted by Alan - IRA critic on Thu, 2021-08-19 15:49
An IRA can go through probate without a distribution from the IRA. If a year of death RMD was not completed, the eventual beneficiary under the will or intestate beneficiary can complete the year of death RMD later on, and request a penalty waiver if the RMD is not completed by year end. It is normal for the IRS to grant the waiver if requested properly with Form 5329 after the RMD is eventually completed.
If the surviving spouse inherits the IRA, there are several PLRs that allow a spousal rollover to be completed to the spouse’s own IRA. It should not be necessary for the spouse to pursue their own PLR, but the process of rollover is simpler if the spouse is the sole beneficiary and also the executor. The year of death RMD could then be taken from the spouse’s own IRA.
Permalink Submitted by Alan - IRA critic on Thu, 2021-08-19 15:49
An IRA can go through probate without a distribution from the IRA. If a year of death RMD was not completed, the eventual beneficiary under the will or intestate beneficiary can complete the year of death RMD later on, and request a penalty waiver if the RMD is not completed by year end. It is normal for the IRS to grant the waiver if requested properly with Form 5329 after the RMD is eventually completed.
If the surviving spouse inherits the IRA, there are several PLRs that allow a spousal rollover to be completed to the spouse’s own IRA. It should not be necessary for the spouse to pursue their own PLR, but the process of rollover is simpler if the spouse is the sole beneficiary and also the executor. The year of death RMD could then be taken from the spouse’s own IRA.