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Inherited Beneficiary RMD

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Level 2

Facts:

1. Taxpayers grandfather passed away in 2017. 

2. (Inherited IRA) was tied up in probate and not allocated to taxpayer until Mid 2019. 

3. No RMD's were taken in 2018 or 2019.

Question: 

Do we need to submit a 5329 for 2018 and 2019 requesting waiver, and take both RMD's in 2020? or can we put both RMD amounts on one 2019 Form 5329 and explain funds were not allocated until mid 2019?

Thanks for any suggestions as well.

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1 Solution

Accepted Solutions
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Level 15

File a 5329 for 2017 for any distribution that did not happen, with a request for waiver. (Not applicable if the decedent did the appropriate RMD for 2017) 

File a 5329 for 2018 for any distribution that did not happen for 2017? + 2018, with a request for waiver.

File a 5329 for 2019 for any distribution that did not happen for 2017? + 2018 + 2019, with a request for waiver. 

Why was there no catch up done when it was allocated in 2019? That is possible the one that might not be waived, but ask anyway. 

The 5329 can be filed all by itself and mail to the appropriate service center to be opened and processed someday. 


ex-AllStar

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Highlighted
Level 15

File a 5329 for 2017 for any distribution that did not happen, with a request for waiver. (Not applicable if the decedent did the appropriate RMD for 2017) 

File a 5329 for 2018 for any distribution that did not happen for 2017? + 2018, with a request for waiver.

File a 5329 for 2019 for any distribution that did not happen for 2017? + 2018 + 2019, with a request for waiver. 

Why was there no catch up done when it was allocated in 2019? That is possible the one that might not be waived, but ask anyway. 

The 5329 can be filed all by itself and mail to the appropriate service center to be opened and processed someday. 


ex-AllStar

View solution in original post

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Level 2

Excellent. Thank you. That's the answer i was looking for. Decedent made RMD in 2017 and nothing was caught up on in 2019 due to general confusion on probate, advising, and process. 

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Level 11

Now tell us the rest of the story.  The grandchild must not have been named as beneficiary, or "tied up in probate" would not be an issue.  What happened to the money between 2017 and 2019?  Was it distributed to an estate IRA account?  Are you sure that no cash distributions were taken?  Did the money simply pass from IRA trustee to IRA trustee to IRA trustee?  Had the grandfather reached RMD age yet, or does they 5-year rule apply?