Hello,

I feel like this question has been asked before, however, I still need clarity on a case. Any help is appreciated.

Our client passed away this year and left an IRA with 5 listed beneficiaries who are all unrelated, all friends. We’ve moved the inherited assets to their own inherited IRAs and were going to discuss each taking their respective share of the year of death RMD, however, one of the beneficiaries just cashed out their entire account. The one bene who cashed out, took enough to cover what the RMD would have been for the deceased client. I’ve read discussion pieces on how it doesn’t matter who takes the RMD, as long as it is taken the same year of death. Curious, since none of the beneficiaries know each other, they wouldn’t be able to coordinate, other than us letting them know someone else already distributed the full amount.

Am I correct in thinking the one bene that cashed out has satisfied the year of death RMD for all even though they are unrelated, or should I consider each still taking their respective share?

Thank you.