RMD’s for beneficiaries

Submitted by John Mlinar on Wed, 2021-09-15 15:45

Hello Alan,

The situation submitted by larisa on 09/14 is very similar to what concerns me. I have three TIRA’s with seven designated beneficiaries, none are a spouse. I have in the past and intend to continue taking my RMD as early in the year as possible. But what if I die before I’m able to complete this? It is all but impossible for seven individuals and three custodians to coordinate and calculate the respective payment due. Once the money is distributed, would the IRS contact each recipient stating amount owed based upon amount received? If not, is there a simple solution? Thanks.



Submitted by Alan - IRA critic on Wed, 2021-09-15 17:23

Does each IRA have a different set of beneficiaries or different %s for each beneficiary from the other IRAs?

Submitted by John Mlinar on Sun, 2021-09-19 17:16

In answer to your question, yes and yes.  Three beneficiaries are named in two separate IRA’s, the remaining four are named in one only.  Each has a different % assigned.  A simple solution in my opinion would be to take your RMD on January 1st, assuming you wake up that morning to greet the new year.  In my case I have a pretty good idea what that amount should be even though I won’t know the exact figures from the respective custodians until later.  Of my three IRA’s two are annuities and one is equities.  In the past and probably in the future I will take my RMD from the equity IRA and let the annuity IRA’s ride.To expand a bit on my original question, is there an IRS requirement that the custodians withhold RMD’s when disbursing payouts to beneficiaries?  None of the custodians would know if the deceased had completed that requirement.  And assuming they don’t (but what if they are required to?) and referring back to my original inquiry, would the IRS then contact each beneficiary with a calculated amount based upon the % they received if the RMD had not been taken.  Thanks again.

Add new comment

Log in or register to post comments