I failed to file the RMD in 2023 on my mom's INH IRA the year following her death because I was expecting Schwab to alert me to this need as they do with regular IRAs. I found out in 2024 that they do not alert to inherited IRAs so I missed it. What do you suggest I do now to avoid penalties, etc.? I did file 2024 when I learned this.
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Welcome to the Event, SrWlms!
For 2023 RMDs, the required beginning date is April 1st of the year that follows the year the owner the IRA owner reached 72. If they did not take it in 2023, you should have taken that RMD by the end of 2023.
In your case, however, the 10 year rule applies because it was your mother's IRA and she died in 2022.
The IRS states that the "final regulations will apply no earlier than the 2024 distribution calendar year". Those that did not take the RMD will not be subject to excise tax.
For additional information please go here: Required Minimum Distributions for IRA Beneficiaries
Edited 6/28/2024 6:05am PST
Assuming that you are not disabled, which would make you an Eligible Designated Beneficiary, you are subject to the 10-year rule because your mother died in 2022. Because the IRS has not finalized the regulations for taking annual RMDs under the 10-year rule, the IRS has waived the penalty for failing to take the 2023 beneficiary RMD. There is no need for you to do anything.
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