Unpaid RMD for deceased taxpayer

Forum|Forum|1 year ago
March 18, 2025
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I am preparing a deceased taxpayer's final return. She did not make a 2024 RMD, but the person who inherited the Trad IRA made an RMD well in excess of the deceased taxpayer's RMD for that account. I don't see anywhere in TT that I can document that, in answering "No" as to whether she made her RMD, a qualified RMD for that account was done by the beneficiary. Do I just answer No and let the IRS ask for more info/payment and deal with it then?

Update: It appears the IRS ruled that the year-of-death RMD is the responsibility of the beneficiary (not pro-rated at all), so I guess I have no issue. I'm not sure why they ask how much the deceased taxpayer had distributed in the year of death if they cannot link that amount with the amount subsequently distributed by the beneficiary, unless it's just to confirm why there is no 1099-R for the deceased taxpayer in her return.

DianeW777

The answer assumes there is a 1099-R on the tax return for your deceased taxpayer. You can answer 'Yes' if the rest of the information below applies.

The distribution requirements are shown below for a beneficiary that is not a spouse and where the account owner began required minimum distributions (RMDs) before death. It's not clear if this taxpayer was at the age requiring RMD.

The amount will be based on the information below but your financial institution will have the numbers for you.

IRS RMDs for Beneficiary

Distribute using Table I-Non Spouse

Use younger of 1) beneficiary’s age or 2) owner’s age at birthday in year of death
Determine beneficiary’s age at year-end following year of owner’s death
Use oldest age of multiple beneficiaries
Reduce beginning life expectancy by 1 for each subsequent year
Can take owner’s RMD for year of death

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sugarspiceAuthor

Employee

There was no 1099-R for 2024 because she did not take any IRA distributions in 2024 (died in January at 88). She had been taking the proper RMD every year prior to her death.

TT does not seem to have flagged a possible penalty for her non-payment against the RMD, but I was wondering if I missed a place where it would ask if the beneficiary of her inherited IRA DID make the 2024 RMD as required. That was done, but there seems to be no place where I tell TT that. I may just include a note to the IRS that the beneficiary did make the RMD and received a 1099-R to pay the taxes on it....