Advanced Underwriting Consultants

Question of the Day – March 29

Ask the Experts!

Here’s the question of the day.

Question: One of my clients died in the year she turned 70 ½, but prior to the deadline for taking her first RMD.  Her son is the beneficiary of the account.  Must the son take the decedent’s RMD for the year of death?

Answer: No.

Here’s an excerpt from IRS Publication 590 on RMD requirements.  They are saying that if the client died in 2012– the year she turned 70 ½–but before the required beginning date (April 1, 2013), there is no RMD due for the year of death from the account that is payable to the nonspouse beneficiaries.

You must receive at least a minimum amount for each year starting with the year you reach age 70½ (your 70½ year). If you do not (or did not) receive that minimum amount in your 70½ year, then you must receive distributions for your 70½ year by April 1 of the next year.

If an IRA owner dies after reaching age 70½, but before April 1 of the next year, no minimum distribution is required because death occurred before the required beginning date.

The first RMD to a nonspouse beneficiary, if he elects to stretch based on his life expectancy, would be due for 2013.

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