Spousal RMD Question
Hello,
I have a client who passed in 2024 and did not take their RMD and the funds are now in a TIRA for the spouse who was the sole beneficiary. If the spouse satisfies the husband’s 2024 RMD how would the IRS now that the RMD was satisfied? How would the spouse report this? She is 72 and is not of RMD age. Should she reach out to a tax advisor on how to report this?
Thank you.
Permalink Submitted by Alan - IRA critic on Tue, 2024-11-12 13:51
There is no special reporting of RMDs that are decedent’s year of death RMDs paid to the beneficiary and no special reporting of RMDs from other non RMD distributions. She will get a 1099R reporting a distribution and will report it in the same manner as if it were not an RMD. The IRS can figure out on their own if the year of death RMD is completed or not.
It also makes no difference if the year of death RMD was distributed from an inherited IRA to the surviving spouse or if it was distributed from her own IRA after electing to assume ownership (which she should do). The deadline to complete the year of death RMD is now the end of the year following the year of death, but because the current year return will be the last joint return, it probably is beneficial to complete the RMD before year end to avoid the higher single rates that will apply after 2024. In addition she will have her own RMD taxable in 2025.