Who pays income tax on RMD payment from inherited IRA?

[Guest JulieT]

My 84 year old father passed away in May of 2001, leaving me and my brother the beneficiaries. My father had not completed his RMD for this year---the year of his death. I have been informed that his RMD MUST be completed before the IRA's are split between me and my brother.

My question is: will the required minumum distribution be reported as income (distribution) on a 1099-R to me and my brother or will it be reported as a distribution to my father?

Julie

[Appleby]

Any distribution to the beneficiary of the retirement plan, including the RMD for the deceased, if such RMD was not taken before death, must be reported in the name and tax ID number of the beneficiary- not the deceased.

[BPickerCPA]

Appleby is definitely correct. Post death distributions can NEVER be taxable to the decedent. They are always taxable to the party receiving them, which would be the beneficiary(ies).

[Guest JulieT]

Thank you all for responding to my posts!  Barry---thank you especially---i've learned alot by reading you post on other web sites!

[KJohnson]

Just a follow up--suppose there are two beneficiaries each as a beneficiary of 50% of the IRA. Could the RMD for the deceased be paid solely to one beneficiary instead of being divided between the two?

[BPickerCPA]

The answer to KJohnson's question is yes. The year of death MRD is a requirement of the account, not each bene. So if one bene takes enough from his share of the account to satisfy the MRD for the year of death, the IRS will be satisfied. Future year MRD's will be the responsibility of each bene.

Barry