Death after RBD

[DTH]

A participant has been receiving minimum required distributions (MRD) for years. The participant has two designated beneficiaries (his son & daughter). The participant dies in 2004 before taking his MRD for the year. The participants daughter wants to take her portion in 2004; his son wants to defer until 2005.

My question is: The 2004 MRD still needs to be distributed. Who gets the MRD?

His estate;

Can it be satisfied by the daughter taking her portion of the benefit; or

Does the MRD need to be prorated between the son & daughter.

Thanks.

[Demosthenes]

p. 36 of IRS publication 590

[Appleby]

The RMD for the year of death must be distributed from the account by 12/31 of the year of death. Since he did not satisfy the RMD before he died, then the designated beneficiaries must distribute the RMD by 12/31/04. Any portion of the RMD for 2004 that is not distributed by 12/31/2004 will be subject to the 50 percent excess accumulation penalty. §1.401(a)(9)-5

[DTH]

Thanks for the answers, however, this does not answer my question.

Demosthenes - This just tells me what to do with multiple benes.

Appleby - The designated bene. is the last "person" standing on 9/30 after the year the participant died (i.e., 9/30/05). MRDs must begin to the benes on or before 12/31 of the year after death (i.e., 12/31/05). Because there are non-spouse designated benes, the benes will use their age in the year after death for the life expectancy factor, then reduced by one for subsequent years.

My question is who gets the 2004 MRD? The participant's estate or the benes. Thanks.

[Everett Moreland]

The beneficiaries get it.

[Appleby]

I agree with Everett