Inherited IRA - Non spouse beneficiary

[Treasur2]

IRA owner dies 1/15/18. Beneficiaries are 4 children equaly. No 12/31/2017 calculated RMD has been taken.

Whos or which return is used for RMD calculation for 12/31/2017.

Deceadent (final 1040, 2018), 1041, or each beneficiaries 1040?

Any URL link, or copy paste is appreciated. I want to send something to my TP. Who is one of 4 children.

[Kram BergGold]

If I Understand

By 12/31/17 a person did not take his RMD. Then he died on 1/15/18. So for 2017 you file Form 5329 and request a penalty waiver. Then yin 2019 you file a 1041 for the estate and report the 2017 RMD received in 2018. The 2018 RMD will be reported by each of the beneficiaries.

[Rapid Robert]

By 12/31/17 a person did not take his RMD.

I interpret the question differently. The RMD that is calculated based on 12/31/2017 is taken in 2018. It is based on the decedent's 12/31/2017 FMV. This is an area where there is no clear guidance about who has to take the RMD. I think it can be any one of the beneficiaries, or any combination they choose, as long as someone takes it. The beneficiaries have no 12/31/2017 balances of their own, so they have no RMD to be taken in 2018 under their own name.

If the IRA has four individual beneficiaries, I don't see why Form 1041 would be involved in any way.

[Treasur2]

Thank you both. Let me try to ask it better.



The 12/31/2017 calculaton is based on the deceased DOB. My interpretaton of regs is what leaves me confused.

The RMD to be taken during calendar year 2018, is from the 12/31/2017 FMV? Based on the deceasdeds DOB. Therefore the question is. Where is it reported?

1. On the final 040 of the deceased for 2018. (very simple estate, no 1040 may even be requried.)

2. On a 1041 or 706 for the deceased?

3. Or is the 12/31/2017 FMV recalculated based on each of the benefiicaires DOB (assuming they take that route/make that choice}, and thus on their individual 2018 1040s.

My interpretation of the regs is that the beneficiares FMV calculations is for the year "following" the year of death. Meaning 12/31/2018 fmv, taken in 2019.

This is my first real world experience with a non-sposual inherited IRA.

[DonB]

See TTB page 13-24, "Inherited IRSs"

Thank you both. Let me try to ask it better.


The 12/31/2017 calculaton is based on the deceased DOB. My interpretaton of regs is what leaves me confused.

The RMD to be taken during calendar year 2018, is from the 12/31/2017 FMV? Based on the deceasdeds DOB. Therefore the question is. Where is it reported?

1. On the final 040 of the deceased for 2018. (very simple estate, no 1040 may even be requried.)

2. On a 1041 or 706 for the deceased?

3. Or is the 12/31/2017 FMV recalculated based on each of the benefiicaires DOB (assuming they take that route/make that choice}, and thus on their individual 2018 1040s.

My interpretation of the regs is that the beneficiares FMV calculations is for the year "following" the year of death. Meaning 12/31/2018 fmv, taken in 2019.

This is my first real world experience with a non-sposual inherited IRA.