Dad’s RMD vs BIRA distributions
Gabe was 83 when he died in March 2022 and his IRA was split evenly between his 5 kids, split into 5 BIRA’s. His IRA was distributed to all kids before his RMD came out this year.
3 of the 5 kids fully distributed their respective accounts in full and will report the full amount on their 2022 tax returns as income. The amounts they distributed were significantly in excess of what Gabe’s RMD would have been for this year. the remaining 2 have not taken any distributions this year.
What has to happen to make sure that all income is reported properly and taxes are paid correctly as it relates to both Gabe and his 5 kids?
If the 3 kids that distributed their BIRA’s represented more than Gabe’s RMD would have been this year, do the other 2 need to take anything out?
Thanks
Permalink Submitted by Alan - IRA critic on Fri, 2022-11-04 15:10
No, they do not. All the IRS cares about is that Gabe’s 2022 RMD was completed. This can be done in any combination between the beneficiaries. Each beneficiary who received a distribution will get a 1099R reporting the amount distributed.