Vlad401k Posted January 29 Posted January 29 An IRA account holder (who was over the age of 73 and already started taking RMDs) passed away in 2024. A spouse rolled over the assets into an Inherited IRA, but did not take an RMD in 2024. Is the RMD Penalty waived based on Notice 2024-35 or does that notice not apply to Spousal beneficiaries? Thank you.
Artie M Posted January 29 Posted January 29 Right, the way I read the notice it doesn't affect lifetime RMDs, RMDs from inherited IRAs by “eligible designated beneficiaries,” or RMDs by beneficiaries who inherited before 2020. It only applies to those beneficiaries with annual RMDs within the 10-year period. Just my thoughts so DO NOT take my ramblings as advice.
Appleby Posted February 4 Posted February 4 On 1/29/2025 at 9:49 AM, Vlad401k said: An IRA account holder (who was over the age of 73 and already started taking RMDs) passed away in 2024. A spouse rolled over the assets into an Inherited IRA, but did not take an RMD in 2024. Is the RMD Penalty waived based on Notice 2024-35 or does that notice not apply to Spousal beneficiaries? Thank you. The 2024 RMD would be the decedent's (the IRA owner) RMD. The waiver does not apply to the IRA owner. And it does not apply to beneficiaries who are not subject to the 10-year rule. Life and Death Planning for Retirement Benefits by Natalie B. Choatehttps://www.ataxplan.com/life-and-death-planning-for-retirement-benefits/ www.DeniseAppleby.com
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