RMD to benes in year of death
Please advise as I have seen conflicting advice.
Traditional IRA owner died 3/2024 without satisfying her RMD. She named charities to receive specific dollar bequests, with the balance of the account to pass to her daughter. Her RMD is less than the amount of the charitable bequests. Will the amount paid out to the charities satisfy the RMD in the year of death? I have read that if there are multiple beneficiaries, then each beneficiary must take their portion of the RMD; one beneficiary cannot satisfy the entire RMD amount or the shortfall of another beneficiary.
Permalink Submitted by Alan - IRA critic on Wed, 2024-06-12 17:38
Yes, the amount paid to charities will be credited to the 2024 RMD even though the IRS will not collect any taxes on those distributions.
While each beneficiary must satisfy their own RMD in the years following the year of death, the year of death RMD can be completed in any combination of beneficiaries, and such beneficiaries are not limited to individuals.