RMD distribution post-death
Mother had IRA, passed away in Jan. 2021. RMD was paid to her checking account June 2021. 4 sibling beneficiaries to the estate. Beneficiaries have the intent to form their own Inherited IRA’s. To date, the Inherited IRA”s have not been completed. As the RMD was paid after the death of the mother, is there a problem with the IRS? As the RMD has been taken and taxes paid, would it be considered fulfilled for 2021, or does the money paid to the deceased mother’s checking account need to be returned, and beneficiaries take the RMD and pay the tax?
Permalink Submitted by Alan - IRA critic on Tue, 2021-08-31 20:24
Please clarify if the June distribution was made to Mother as an automatic payment, with the custodian not knowing that she had passed, or if it was paid to her estate with the executor depositing it in an estate checking account. Either way, the RMD has been completed for 2021, but the reporting will differ based on the above, because the 1099R will report the tax ID of the payee for the June distribution.