FIRST STAGE RMD WHEN PERSON PASSES AWAY
A SPOUSE TURNED 72 THIS YEAR AND PASSED AWAY IN SEPTEMBER, BUT HE DIDN’T TAKE HIS RMD BEFORE HE PASSED. ALSO, HIS WIFE ALSO TURNED 72 THIS YEAR AND IS, OF COURSE, THE BENEFICIARY OF THE RETIREMENT ACCOUNTS. DOES HIS RMD NEED TO BE TAKEN? SINCE IT IS BEING TURNED OVER TO THE WIFE, SHE IS INTERESTED IN DEFERRING THE 2021 RMD UNTIL 2022. WHAT ARE THE RULES FOR A DECEASED PERSON IF THIS IS THEIR FIRST RMD?
Permalink Submitted by Alan - IRA critic on Fri, 2021-12-10 22:30
The decedent passed prior to his required beginning date (4/1/2022), therefore there is no 2021 year of death RMD. The surviving spouse should elect to assume ownership of the inherited IRA, and if this is done prior to 12/31/2022 she will be treated as owning the IRA the entire year of 2022. Her 2022 RMD will be based on the 12/31/2021 balance and she will be able to use the new Uniform Table (all RMD tables will be new for 2022) for determining the 2022 RMD. She can also combine the new IRA with her own IRA if she already has one, and her 2022 RMD will be due by 12/31/2022, not 4/1/2023.
Permalink Submitted by Rene Nourse on Mon, 2021-12-13 06:14
But wouldn’t his 2021 RMD been based on the value of the account as of 12/31/2020?
Permalink Submitted by Alan - IRA critic on Mon, 2021-12-13 17:14
It would have been had he lived, but now that he has passed prior to his RBD (4/1/2022), there is no 2021 RMD due. She can assume ownership with no 2021 RMD.
Permalink Submitted by Rene Nourse on Tue, 2021-12-14 03:43
Thanks for the clarification.