Retirement Plan missed RMD 2022
Retirement plan owner died in 2023 and took RMD for 2023. But failed to take RMD in 2022.
The retirement plan has distributed 1/2 the account (due to death) to one of the 50% beneficiaries—-to be deposited into an inherited IRA.
Questions: How is the 2022 RMD to be solved? Does it need to come out of the plan before final distributions to beneficiaries? Or do the beneficiaries need to take a distribution from the inherited IRA now in 2023 (for the 2022 RMD)?
Thank you.
Permalink Submitted by Alan - IRA critic on Mon, 2023-06-12 18:16
The beneficiaries are only responsible for completing the year of death RMD. If RMDs were missed in prior years, there are no requirements for the beneficiaries to make up those missed RMDs. Also, if a distribution was made to a non spouse beneficiary, it cannot be rolled into an inherited IRA through a 60 day rollover. The funds can only be transferred to an inherited IRA by a non reportable direct transfer, or if the plan was a qualified employer plan (401k) by a direct rollover to an inherited IRA.
Permalink Submitted by Steven Halko on Mon, 2023-06-12 18:35
Thank you!