RMD after Death

[Lou81]

RMD's used to be simple.....

I have a participant who i just found out passed away 12/2023.  He was over 80 years old.  He has a surviving spouse who is the beneficiary.

He never took an RMD as he was still employed and not an owner.

Client is saying that they do not have to take an RMD.   Since he wasn't required to take an RMD prior to death, can the 10-year payout be used?

I'm thinking she should have taken the 2023 and 2024 RMD.

I appreciate any help.

Thanks!

 

[Peter Gulia]

Although many BenefitsLink neighbors are fond of saying Read The Fabulous Document, this might be an occasion for looking beyond “the” plan document because a plan’s true provisions might be stated with some tolerances for:
(1) interpreting a provision according to the Internal Revenue Code and Treasury rules, and
(2) treating as in-operation provisions some that might be written later within a remedial-amendment period, including those periods for SECURE 2019 and SECURE 2022.

If so, might this rule tell you much of what the plan’s administrator wants to know?

26 C.F.R. § 1.401(a)(9)-3(c) https://www.ecfr.gov/current/title-26/part-1/section-1.401(a)(9)-3#p-1.401(a)(9)-3(c)

Also, for a situation in which the participant died before a distribution commenced and the beneficiary is the participant’s surviving spouse, does the recordkeeper’s or third-party administrator’s software determine what required beginning date applies?

[Bruce1]

The surviving spouse can assume his 401k as her own and retitle it to her name. That would negate the 10-year rule as that rule doesn't apply to spouses who retitle the 401k/IRA into their name. 

Is she over the age of 73?