Death before minimum required distribution

[jlf]

A 1999 required minimum distribution should be made if the decedent's required beginning date was reached prior to death.

Did the beneficiaries rollover their portion of the inherited IRA to their own IRA with the use of their own life expectancies in the computation of their own required minimum distributions? Please advise.

------------------

[Guest Robert Lees]

Have a client who died in 1999 before receiving their 1999 minimum required distribution. After death his account was distributed entirely to his beneficiaries. Is this a problem? should we have paid the minimum required distribution first?

[Wessex]

Robert Lees -- It's my understanding that there is a difference of opinion among benefit practitioners as to whether the RMD for the year of death (if not paid prior to death) must be paid to the estate of the deceased or to the beneficiary. The IRA documents with which I am familiar do not explicitly address this issue, although they do provide that the undistributed account balance will be paid to the beneficiary or beneficiaries. Does your IRA document language help? Anyone else have any thoughts -- and any cites?

Your message indicates that distributions were made to the beneficiaries, so rollovers do not appear to be relevant. In any event, as I'm sure you know, non-spouse beneficiaries cannot make rollovers.