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RMD for Prior Year and Account Owner Deceased


David Olive

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Account Owner of IRA failed to take RMD for 2022 (account owner was incapacitated and under conservatorship).  Account owner subsequently passes away in 2023.  The question is, how does 2022 RMD get addressed?  Are the beneficiaries liable for the 2022 RMD?

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You need to correct the missed RMD, presumably by paying it out to the beneficiaries in their beneficiary percentage.

You can request a waiver of the RMD penalty for 2022 by filing Form 5329. I can't imagine the IRS would reject the waiver in this case because if this isn't reasonable cause, I'm not sure what is but then I'm also not the IRS.

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22 hours ago, Lou S. said:

You need to correct the missed RMD, presumably by paying it out to the beneficiaries in their beneficiary percentage.

You can request a waiver of the RMD penalty for 2022 by filing Form 5329. I can't imagine the IRS would reject the waiver in this case because if this isn't reasonable cause, I'm not sure what is but then I'm also not the IRS.

Would it not be payable instead to the estate, standing in the owner's place, as this is correcting a distribution that should have been made to the owner during his/her life? 

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2 hours ago, Adi said:

Would it not be payable instead to the estate, standing in the owner's place, as this is correcting a distribution that should have been made to the owner during his/her life? 

Agreed.

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