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Author: TMFPMarti Big funky green star, 20000 posts Home Fool Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: of 121219  
Subject: Re: RMD for decedent Date: 12/19/2012 11:50 AM
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A friend of mine died in mid-November, 2012. She was 88 years old. She had not taken her RMD for 2012 by the time of her death. She had three beneficiaries for the IRA and they inherited roughly equal shares (34,33,33%).

The beneficiaries are taking out their proportional share of what the decedent should have taken for 2012 and are doing so before year end.

My questions are: How does anyone think the IRS will view all of this? Do the inheritors also have to take something else out for 2012?


Everything's correct. The beneficiaries' RMD's from their inherited IRAs don't kick in until the year after death. Had the decedent taken her 2012 RMD before she died the beneficiaries wouldn't have had to take anything in 2012.

Details are in IRS Pub 590.

Phil
Rule Your Retirement Home Fool
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