IRA owner passes away prior to Required Begin Date

Submitted by Thom Kirer on Mon, 2022-10-24 21:39

my father turned 72 this year and took his RMD distribution. Unfortunately he then passed away before reaching his RBD (next April). Do the beneficiaries have an option to ‘undo’ the RMD distribution?



Submitted by Alan - IRA critic on Mon, 2022-10-24 22:01

No, good question though. The rule has always been that if an IRA owner passed prior to RBD without taking a distribution, the RMD for the year of death would not be required to be distributed by the beneficiary. However, if the owner did take a distribution in an RMD distribution year while living, it is treated as an RMD not subject to rollover.

Submitted by Thom Kirer on Fri, 2022-10-28 13:31

under this scenario, do the beneficiaries now have to take RMD’s in years 1 – 9 ?

Submitted by Alan - IRA critic on Fri, 2022-10-28 15:00

Since father passed prior to his RBD, the beneficiaries will not have to take annual RMDs in years 1-9. But they must drain the inherited IRAs by 12/31/2032.

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