After Death RMD to Estate?
Account owner died without taking full RMD. The estate needs the funds to cover expenses. Can the remaining RMD be paid to the estate instead of the beneficiaries?
Account owner died without taking full RMD. The estate needs the funds to cover expenses. Can the remaining RMD be paid to the estate instead of the beneficiaries?
Permalink Submitted by Alan - IRA critic on Wed, 2025-08-20 11:05
Inherited IRA distributions can only be made to the named beneficiaries, so if the estate is not the beneficiary and needs funds, the year of death RMD or any additional distributions must be made to the beneficiaries, will be taxable to those beneficiaries, and they can then provide funds to the estate to pay estate expenses.
Of course, these beneficiaries can also use other funds as a source of estate funding. This is usually the case if all assets pass by POD/TOD and the estate does not have enough to pay final taxes, expenses, etc.