Missed RMD Prior to Death, who is responsible for filling out Form 5329
Parent passed away Jan 2024, not having taken RMD’s for 2023 or 2024. I understand that the RMD for 2024 should be taken by me, the non-eligible designated beneficiary (non-minor child of deceased).
My question pertains to the missed RMD for 2023, what should be done in that case? Should Form 5329 be filled out on behalf of the deceased or should I fill out the 5329 and ask for a reasonable cause waiver of the penalty?
Thanks in advance for your time and assistance.
Permalink Submitted by Alan - IRA critic on Fri, 2024-04-26 15:14
You are only responsible for the year of death (2024) RMD according to the IRS Regs, so can forget about the 2023 RMD. There is no need to file a 5329 for 2023. At this point, it is expected that the IRS will finalize the proposed Secure Act Regs later this year, and in 2025 you will be required to take a beneficiary RMD based on your single life expectancy, and drain the inherited IRA by 2034 (10 year rule). But you do have to complete the parent’s 2024 RMD this year from your inherited IRA. There is no special tax reporting for this.
Permalink Submitted by Sam Elsaf on Fri, 2024-04-26 20:11
Thank you Alan.