dmertz
Level 15

Retirement tax questions

There is no "partial year" when determining RMDs; RMDs are calculated as a yearly amount.  However, any part of year-of-death RMD required to be taken by the deceased that was not satisfied by the deceased prior to death is the combined responsibility of the beneficiaries.  The beneficiaries can satisfy the remainder of the deceased's year-of-death with any combination of distributions paid to the beneficiaries.

Provided that a separate account for each designated beneficiary was established by December 31, of the year following the year of death, each beneficiary will be required to calculate and take their own RMD as beneficiary from their own inherited IRA account.  If separate accounts were not established, RMDs are based on the age of the oldest designated beneficiary.

See IRS Pub 590-B regarding the determination of the amount of RMDs:

https://www.irs.gov/publications/p590b/ch01.html#en_US_2016_publink1000230753

View solution in original post