IRA Distribution
Facts….Mother died in 2016 and was receiving RMD’s . …Son age 55 inherited IRA and has not taken any distributions. How should I handle this?
Facts….Mother died in 2016 and was receiving RMD’s . …Son age 55 inherited IRA and has not taken any distributions. How should I handle this?
Permalink Submitted by Alan - IRA critic on Mon, 2022-01-10 21:27
Son should calculate the late RMDs for 2017-2019 and 2021 and request a distribution of the total amount of late RMDs. He should then file Form 5329 requesting that the penalty for those years be waived for “reasonable cause”. The IRS typically waives the penalty if the beneficiary makes up the late RMDs. Son can then continue with life exepctancy RMDs in 2022 and beyond.
Son was also responsible for completing mother’s 2016 RMD if she did not do so before passing. The 2016 Form 5329 waiver request should include this distribution as well. Son would have to know what mother’s 2016 RMD was and the amount of any shorfall to make up.