RMD’s for deceased client
Client came on board in 2023 after her husband died (after a few years of being ill). Husband should have received RMDs in 2021 and 2022 but due to the stress of being ill, the RMDs went by the wayside and were never distributed. All IRA assets are now in wife’s IRA so nothing can be pulled from his IRA since it no longer exists, and there isn’t an Inherited IRA. Is there any issue with her paying the RMD’s from her IRA and filling out a 5329 to request waiver of penalty? She is still filing MFJ for this year.
Thank you in advance for any feedback.
Fred Cornelius [email protected]
Permalink Submitted by Alan - IRA critic on Mon, 2024-04-08 15:26
The beneficiary is only responsible for the year of death RMD, not prior years. Therefore, she should withdraw what would have been his 2023 RMD, and if this is completed by 4/15/2024 she will not have to file a 5329 for 2023 per the Secure Act proposed Regs. It does not matter that this RMD is taken from her own IRA. Note that this RMD will be reported on her 2024 return, and she cannot file jointly in 2024 unless she is a qualified widow with a dependent child.