Death in 2021 but account closed in 2022 with an RMD listed
A mother died in December 2021, and she had taken her 2021 RMD. The mother’s account wasn’t closed out until January 2022 though, and now, her children have inherited IRAs set up under the 10 year rule.
However, the custodian of the mother’s IRA shows a 2022 RMD calculation for the mother’s account since the account had a balance as of 12/31/2021.
Are the children required to take this 2022 RMD this year even though the mother died last year and had fulfilled her last RMD prior to death? Thanks!
Permalink Submitted by Alan - IRA critic on Thu, 2022-02-10 22:54
No, the children are not responsible for a 2022 RMD other than any disabled child who would not be subject to the 10 year rule. Otherwise, the children have no RMD requirements other than to drain their inherited IRAs by 12/31/2031. That said, they would probably benefit from not waiting until the final couple of years because a large distribution then could spike their marginal tax rate.