Inherited IRA RMD Question

[DaveLeeNC]

The situation is an IRA where the owner died in May 2022 (before taking her RMD). There were 7 beneficiaries and the account transfers are complete.

I don't know why I thought this but I was under the impression that one (or more) of us must make a withdrawal equal to (or greater than) the RMD amount of the original owner during 2022. One of the siblings (I know - a bit late now) is questioning this.

So what exactly are the requirements to meet the original owner's RMD requirements for 2022? Is it really distributed among the seven beneficiaries? That seems extreme (and a bit late to figure this out, I guess). My research has left me unclear on this.

Thanks.

dave

ps. I think that I understand the convoluted rules for 2023 and beyond, but not sure about 2022.

 

[MuirWannabe]

The situation is an IRA where the owner died in May 2022 (before taking her RMD). There were 7 beneficiaries and the account transfers are complete.



I don't know why I thought this but I was under the impression that one (or more) of us must make a withdrawal equal to (or greater than) the RMD amount of the original owner during 2022. One of the siblings (I know - a bit late now) is questioning this.



So what exactly are the requirements to meet the original owner's RMD requirements for 2022? Is it really distributed among the seven beneficiaries? That seems extreme (and a bit late to figure this out, I guess). My research has left me unclear on this.



Thanks.



dave



ps. I think that I understand the convoluted rules for 2023 and beyond, but not sure about 2022.

If the inheritance was distributed to the 7 beneficiaries in 2022, then my understanding is each of the 7 should have performed an RMD for the percentage required by the deceased in that year. That’s how we did it just a couple years ago. Possibly the rules have changed.

As for how to handle it in 2023 if no RMD was done in 2022 I’m not sure. I’m sure there is some form to fill out for a retro RMD.

 

[DaveLeeNC]

Thanks for the responses. The following from https://www.irs.gov/retirement-plans/required-minimum-distributions-for-ira-beneficiaries is useful but not totally clear. It does not say that the beneficiaries MUST take the owner's RMD (and the context here - did the owner take his/her RMD or not - is unclear).

dave

 

[cathy63]

Thanks for the responses. The following from https://www.irs.gov/retirement-plans/required-minimum-distributions-for-ira-beneficiaries is useful but not totally clear. It does not say that the beneficiaries MUST take the owner's RMD (and the context here - did the owner take his/her RMD or not - is unclear).

dave

That chart is not good. Rely on IRS Pub 590-B instead. Here's a quote from page 9:

If the owner died on or after the required beginning date, the IRA beneficiaries are responsible for figuring and distributing the owner's required minimum distribution in the year of death. The owner's required minimum distribution for the year of death is generally based on Table III (Uniform Lifetime) in Appendix B. However, if the sole beneficiary of the IRA is the owner's spouse who is more than 10 years younger than the owner, use the life expectancy from Table II (Joint Life and Last Survivor Expectancy).

Note. You figure the required minimum distribution for the year in which an IRA owner dies as if the owner lived for the entire year.

You do not have to divide the RMD by 7 and have everyone take a share. You can take the entire amount yourself if you and the other beneficiaries decide that's the best course of action.

 

[DaveLeeNC]

Thank you, @cathy63 . I believe that answers the question. dave