EDB Missed RMD
Client inherited an IRA in 2020 from his sibling who was nine years older than him. He should be eligible to be an EDB however he has not taken any RMDs from the bene IRA as he was either unaware he was an EDB or he didn’t realize he needed to be taking RMDs. What are his options? Can he remedy the missed RMDs as an EDB or is he deemed to have elected the 10 year option? Thank you!
Permalink Submitted by Alan - IRA critic on Wed, 2025-05-28 16:36
For IRAs (but not necessarily qualified plans), even if the decedent passed prior to RBD, there is no default provision that results in an EDB that fails to take annual RMDs to end up with the 10 year rule. Therefore, the EDB must make up the missed RMDs for 2021-2024 and file a 5329 to request waiver of the penalty.
If the decedent passed prior to RBD, the EDB could have elected out of EDB treatment and into the 10 year rule, but the deadline for that election would have been 12/31/2021.
Permalink Submitted by jmemeier on Wed, 2025-05-28 16:58
Thank you!