Inheriting an IRA 33 years after death

[LedgerLearner]

A family discovered a deceased relative's IRA this year, 33 years after the relative's death. Should the beneficiary follow the old IRA distribution rules or the new SECURE Act rules? Thank you for your feedback.

[Rapid Robert]

Welcome to the forum!

That is odd. I don't immediately have an answer for your question, but why wasn't the IRA turned over to the state's abandoned property division decades ago?

Form 5498 reporting year-end FMV should have been issued every year, where was that going?

edit: it's possible that there are penalties due for some number of years of excess accumulation (due to not taking the required RMDs). I'm not sure simply saying "no one knew" is reasonable cause.

[LedgerLearner]

It's odd, especially since the account is not small. Given the account's size and the situation's complexity, perhaps requesting a Private Letter Ruling might be prudent—just brainstorming.

[JON]

Who was the fiduciary? I doubt they were doing what is required. I think the fiduciary should be part of the discussion of what to do and how to do it!! If they do not have the knowledge of what or how, I would contact other fiduciaries on what to do!!!

[LedgerLearner]

Thank you for the feedback. There are so many pieces that need to be assembled.

[New York Enrolled Agent]

Don't know what state where the decedent lived but are you certain that the account funds have not been escheated to the state?

I don't think a PLR would be of any help - my opinion.

[LedgerLearner]

Thank you for that. I'm not certain on that, but am working to clarify.

[JON]

Not exactly the same, but I had a Doctor who was retired and went to lunch with an old friend. They had both worked at the same place 30+ years ago and in the conversation of retirement his friend mentioned he was still getting RMDs off from the rollover of where they had worked together!! He knew if his friend had some he should to. His broker, financial advisor(of 40 years) for my guy found it. An IRA that he should have had distributions RMDs for 5 or 6 years. There were communications with the fiduciary going only to the advisor. He just started drawing five years late and we attached the excuse that it was the fiduciary's mistake and paid no penalty or interest!(if assessed we were going to send it to the advisor's firm) Never heard anything and he is still getting RMDs from the same source. Is the IRS overloaded, the excuses used for late payments even a month to six months always have been accepted or not look at. All the required filings to the IRS 5498s probably were done - IRS has stated previously they were going to try and match - I do not think they have. The broker financial advisor retired and the new one called me, and wrote a letter saying her predecessor had made a BIG mistake and the firm had been waiting to see what it was going to cost them The cost was nothing.

[LedgerLearner]

Thanks Jon. That's a remarkable story for a number of reasons. I appreciate your perspective. The beneficiary is getting multiple (different) recommendations.