Deceased IRA distribution year AFTER death
A deceased client’s IRA was transferred to her heirs’ inherited IRAs before 12/31/2022. Dividends were paid between the date of transfer and 12/31/2022 for $451.38. The $451.38 was transferred to the inherited IRAs in January 2023. Should each inherited IRA beneficiary add their proportional share of $451.38 to their 12/31/2022 inherited balances in calculating their 2023 IRA RMD? Will there be a 1099 for the $451.38 under the deceased’s social security number?
Many thanks as always Mary Dean
Permalink Submitted by Alan - IRA critic on Tue, 2023-01-10 21:23
Since these dividends were just transferred between inherited IRAs, a 1099R should not be generated. Yes, each beneficiary should add their pro rated share of these dividends to their 12/31/2022 balance.