Spouse Inherited IRA – Missed RMD in 2022
I am working on a situation where we had husband die in 2008 (age 62 at death) and his wife was the sole beneficiary. She has been taking her RMD annually until 2022 when it was missed. I understand the rule that when a spouse misses RMD from an inherited IRA the IRA is now deemed to be her own. Wife turned 72 in 2022 so that would be the year of her first RMD anyways. We are taking the steps now to correct the missed RMD and to also get the IRA moved to her name. My question is what is the amount of the 2022 RMD that needs to be taken now? The wife’s factor based on her own age from Table III 72= 27.4, the wife’s factor for inherited IRA from Table I 72=17.2. Obviously using the factor from Table III results in a smaller RMD and would be preferred. I believe since the IRA is to be treated as if it was in her name for all of 2022 then that is the correct amount and it would be the smaller, preferred distribution, but I want to confirm I am not missing something here.
2022 missed RMD if Inherited IRA
$44,259.45 / 17.2= $2,573.22 (factor from 2022 Table I)
2022 missed RMD if wife’s IRA
$44,259.45 / 27.4= $1,615.31 (factor from 2022 Table III)
Thank you!
Permalink Submitted by Alan - IRA critic on Thu, 2023-04-13 23:25
The Uniform Table applies here. Actually, she had no beneficiary RMD until the year husband would have reached 70.5, so those first few years were non RMD distributions. As you said, she is treated as owning the inherited IRA (if sole beneficiary thereof) for the entire year in which she falls short of taking a full beneficiary RMD, so her 2022 RMD is the Table III calculation. Moreover, since her RBD was 4/1/2023 she could have taken that 2022 RMD by the RBD without being late, but apparently missed that deadline. Therefore, she will make to make up the missed 2022 RMD and her 2023 RMD this year, and file a 5329 to request that the penalty be waived for the late 2022 RMD. The 5329 should be a 2023 5329 because the 2022 RMD was not delinquent until 4/1/2023.
Permalink Submitted by Jessica DeBold on Thu, 2023-04-13 23:38
Thank you for the confirmation and clarification, I was going to have her use 2022 5329 – good catch!