Required Minimum Distribution

hello!

I have a participant over age 72 that passed away in 2020.    The RMD was waived in 2020

His spouse (beneficiary) passed away in 2021.  She was over age 72 as well.

The 3 children are the beneficaries.

RMD is required for 2021, based on 12/31/2020 value.

Whose date of birth would the RMD be based on? 

I appreciate your help!

We don’t know the provisions of your client’s plan, what distribution (if any) began before the participant’s death, and, if such a distribution began, what form it is or was.  Further:

Is your client’s plan a defined-benefit plan or an individual-account (defined-contribution) plan?

Is it a governmental plan?  A church plan?  A collectively-bargained plan?

Might the plan (considering the particular plan’s provisions in the particular circumstances) not require a distribution in 2021?

Might it be enough that a deceased participant’s remaining benefit is distributed by the end of the tenth calendar year that follows the year of the participant’s death?

If none of the designated beneficiaries is an eligible designated beneficiary, might it be unnecessary to apply a rule about a life expectancy, and so unnecessary to use a beneficiary’s date of birth?

If the plan and the circumstances make it relevant, consider Internal Revenue Code of 1986 (26 U.S.C.) § 401(a)(9)(H).

https://uscode.house.gov/view.xhtml?req=(title:26%20section:401%20edition:prelim)%20OR%20(granuleid:USC-prelim-title26-section401)&f=treesort&edition=prelim&num=0&jumpTo=tru

This is a defined contribution plan.  There were no distributions prior to his death, as he wasn't required to take any. 

Unless your client’s plan’s provisions are more restrictive than IRC § 401(a)(9) requires, consider whether a beneficiary might delay until 2030.

the plan is terminating this year.

If a plan’s final administration pays in 2021 each beneficiary a single sum of his or her separate-share account balance, none of that final distribution need count as a minimum-distribution amount.

There is no need to use a life-expectancy factor to compute a minimum-distribution amount unless: (1) a designated beneficiary is an eligible designated beneficiary; (2) the plan permits an eligible designated beneficiary to elect a provision grounded on § 401(a)(9)(B)(iii); and (3) the beneficiary elected to apply that provision.

Those circumstances are unlikely, especially for a discontinued plan in its final administration.