1041 estate question??? Deceased had IRA the beneficiary was her husband who died before her. I am new at this-the "estate" becomes the beneficiary and the tax has to be paid on the 1041 for that???? Everything was passed out to the two beneficiaries - but as I remember hearing if the estate is the beneficiary the taxes are paid for IRA - on 1041 level.
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If the IRA owner dies without a beneficiary, the estate has until September 30 of the year following death to decide to designate new beneficiaries of the IRA. If the estate does not do this, then the IRA must be paid out within 5 years, unless the decedent was already receiving RMD at death, in which case it would be paid out over the decedent's remaining life expectancy. -
Form 1041
If I understand your question correctly, the IRA was paid to the estate. If the
funds were then paid to the heirs(two beneficiaries) and this was the final return
for the estate, the taxable income must be passed through to the heirs by
using K-1's.Comment
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