Announcement

Collapse
No announcement yet.

RMD for Inherited IRA

Collapse
X
 
  • Filter
  • Time
  • Show
Clear All
new posts

    RMD for Inherited IRA

    I have a client who is the beneficiary of her mother's IRA (mother died January 11, 2021) my client is
    more than 10 years younger, so falls under the Designated Beneficiary Rules. (10-year rule)
    The way I understand, no RMDs are required during the 10-year period, but the IRA must be fully distributed by the end of the 10th calendar year following the year of death. (which would be
    at the end of year 2032).

    My question: since her mother did not take her RMD in the year of death, does my client have
    to take the RMD on her return for year 2021, then start the 10-year rule in year 2022.

    Reading from TTB page 13-23, I may have just answered my question.
    Distributions to individuals are required to be distributed by the end of the 10th calendar year following
    the year of IRA owner's death, regardless if the owner dies before, on, or after, the required
    beginning date.

    I'm thinking, under the old rule, client would have to take the RMD for year 2021, however,
    under the 10-year rule, client does not have to. Does that make since?

    What do you think?

    #2
    Gene - I believe the answer to your question is yes - an RMD is required. I don’t disagree with your TB cite but that refers to the inherited IRA which come into existence after the death of the owner.

    While not an authoritative cite, look at Pub 590-B page 8 and see what it says. See if I’m reading it correctly.

    Comment


      #3
      Originally posted by New York Enrolled Agent View Post
      Gene - I believe the answer to your question is yes - an RMD is required. I don’t disagree with your TB cite but that refers to the inherited IRA which come into existence after the death of the owner.

      While not an authoritative cite, look at Pub 590-B page 8 and see what it says. See if I’m reading it correctly.
      By reading the Pub 590-B (year 2019) and other information on the web. It seems like you would
      have to take RMD for the decease person. Maybe when they update the Pub 590-B it may read
      difference.

      Thanks New York EA, for your input

      Comment


        #4
        Originally posted by Gene V View Post

        By reading the Pub 590-B (year 2019) and other information on the web. It seems like you would
        have to take RMD for the decease person. Maybe when they update the Pub 590-B it may read
        difference.

        Thanks New York EA, for your input
        Gene - I think ยง401(a)(9)(B) might be the more technical answer.

        Comment

        Working...
        X