RMDs in Estate not settled for 3 years
Client inherited IRA from her mother in 2019. The mother had already begun taking RMDs and had taken the 2019 RMD. The client’s brother was in charge of the estate. No distributions have been taken from the IRA since the mother’s passing. Client cannot get any back statements or records and only has the 12/31/22 value of the account. What to do to go forward?
Permalink Submitted by Alan - IRA critic on Thu, 2023-04-20 18:39
2020 RMDs were waived by the CARES Act, but the estate has missed the 2021 and 2022 beneficiary RMDs based on the age of mother in 2019. The year end balance for 2022 and 2021 will be needed to determine those delinquent RMDs and the estate or the beneficiaries of the estate if the IRA was assigned to them will have to make up those missed RMDs and file Form 5329 to request the penalty waiver. Perhaps the IRA custodian can provide those valuations which would also have been reported to the decedent/estate or indicated on any of the year end statements. Or check with the executor if client is not the executor.