IRA WITHDRAWAL

[TAXMAN]

Can someone with a site reference or info answer this question. TP age 73 already withdrawing from IRA(regular) under RMD rules dies before he can take out this years RMD. Must administrator withdraw RMD under TP's # and remainder can go to heirs? No spouse alive, just 3 kids to inherit all. My reading leads me to believe that even though TP is deceased there still must be a RMD for the year of death. Thanks to all who can shed light on this. :scratch_head:

[Catherine]

Can someone with a site reference or info answer this question. TP age 73 already withdrawing from IRA(regular) under RMD rules dies before he can take out this years RMD. Must administrator withdraw RMD under TP's # and remainder can go to heirs? No spouse alive, just 3 kids to inherit all. My reading leads me to believe that even though TP is deceased there still must be a RMD for the year of death. Thanks to all who can shed light on this.

From CFS online Tax Research, Quick Reference Guide, CFS/Federal Information/Retirement

Beneficiary qualifies as a designated beneficiary, is not the sole beneficiary, and is spouse or is a qualified designated beneficiary:

Beginning no later than 12/31 after the year of death, if there are not separate accounts, use the age of the oldest beneficiary in the calendar year immediately following the year of death and Single Life Expectancy (reduced by one in each subsequent year). If all the beneficiaries are not all individuals, the 5-year rule applies. If there are separate accounts, use the Single Life Expectancy (reduced by one in each subsequent year) of each beneficiary for their separate account. If RMD had been reached, use the longer of the life expectancy of the oldest beneficiary or the decedent in the calendar year following the year of death.

Not sure if this really helps, but it was what I could find quickly.

Catherine

[TAXMAN]

Basic question still remains. TP receiving RMD dies 07 before he gets RMD for 07, must there be a RMD for TP in 07?

[joanmcq]

Not for TP, but the bene's have to take out the deceased's RMD. Then they can go on their own RMDs for 2008 if the account is split. If it isn't split, it goes by the oldest beneficiary's age.