10 year rmd inherited ira

Submitted by diane fost on Mon, 2023-08-28 14:16

as a non spouse, i, a daughter was beneficary of traditional ira in 2021 after moms death that year. I only found out in 2023. Luckily 2020 rmds were not required on original owners ira.
However the avvount still remains in her name as of 2023, New irs rulings are waiving 2021 and 2022? rmds for inherited ira but since i did not file the paperwork is the original owner stil resp for rmd and is there a penalty?



Submitted by Alan - IRA critic on Mon, 2023-08-28 14:35

  • As soon as the owner passes, the beneficiary is responsible for only the year of death RMD, therefore if mom did not complete her 2021 RMD before passing, you were responsible for completing it by 4/15/2022. The IRS has waived your 2022 and 2023 beneficiary RMDs due to their delay in finalizing the Secure Act Regs., but you will probably have to take a beneficiary RMD in 2024-2030 and drain the inherited IRA in 2031. While there is no beneficiary RMD due this year, you might still want to take a distribution if you want to avoid a large distribution in 2031 or in future years. Note that delay in discovery of the inherited IRA does not in any way change the RMD requirements that would have applied. But if mom’s 2021 RMD was not completed, you are late in completing it and will have to take it ASAP and file Form 5329 for 2021 to request that the penalty be waived for reasonable cause (delay in account discovery). The IRS will grant the penalty waiver if you properly file the Form after completing the 2021 RMD. Your 2024 beneficiary RMD is based on what your single life table divisor was for 2022 (Your age in 2022) but reduced by 2.0 for 2024 and 1.0 for each year thereafter. 
  • If there were other beneficiaries, please advise.

Add new comment

Log in or register to post comments