RMD requirement for Multiple Beneficiaries during year of Death
My Mother passed away Jan 2023. My 4 siblings created inherited IRA’s and transferred her existing IRA equally into each of our Inherited IRA accounts. I am receiving differing opinions on whether the 2023 required RMD needs to be shared equally among the four of us or can a single beneficiary (one of my siblings) elect to distribute the entire 2023 required RMD while the remaining three beneficiaries not take any distribution.
thank you
Permalink Submitted by Alan - IRA critic on Tue, 2023-03-28 20:49
Any one of more of the beneficiaries can complete mother’s 2023 year of death RMD, and in any combination. However, this assumes that all of these inherited IRAs had identical beneficiaries and %s. If any of them were different, then the math gets very complex. Also, note that the beneficiaries will need to communicate and be sure that the one taking the RMD actually follows through. There are many cases when beneficiaries procrastinate, do not communicate, or are even not on speaking terms with other beneficiaries.
Permalink Submitted by David Rohde on Wed, 2023-03-29 15:37
Thank you that was helpful. Yes all equal ownership %’s