Year of Death RMD
I have a client who’s husband passed in February of 2022. She failed to take his RMD by year end. I have seen the waived RMD penalty for year of death RMDs but all examples show a late year death. Are they waiving it for early year as well?
Permalink Submitted by Alan - IRA critic on Fri, 2023-01-20 21:33
A new provision in the proposed Secure Act Regs now provide additional time to complete the year of death RMD. Beneficiaries have until the tax due date (4-18-2023) or if an extension is filed till 10/16/2023 to complete the year of death RMD. Further, if these deadlines are met, there is no need to file Form 5329 to request a penalty waiver. That said, distributing the 2022 RMD in 2023 along with the 2023 RMD if applicable will boost taxable income in 2023 when she will be filing using the higher single tax rates.