Beneficiary of an inherited IRA

[Coyote5]

My husband's father passed away in 2021 at age 91 yrs and left a $50,000 IRA to my husband(64 yrs).  Under the inherited IRA tax laws it is under the 10 year rule and must be fully withdrawn by Dec 31,2031. We withdrew $10,000 in 2023 .  The Turbo Tax program asks to select one of the following:

~ Received all the RMD for 2023

~ Did not receive all the RMD for 2023

~ Was not required to take an RMD for 2023

I'm not sure how to answer this item. 

[MarilynG1]

You can choose 'Received all the RMD for 2023'.  Since it is the Plan Administrator's responsibility to make sure that RMD is taken (if required), the 10K distribution included the RMD.

Since neither you (nor the IRS) knows the required amount of RMD, it is only needed if you wished to rollover the RMD to a QCD.

Here's more info on IRS Requirements for RMD's. 

[dmertz · Accepted solution]

Although it's not the responsibility of the IRA custodian to make sure that the RMD for the inherited IRA is satisfied, a $10,000 distribution from a $50,000 inherited IRA is more than enough to satisfy the RMD for an age-64 beneficiary, so you can answer that your husband received all of the RMD for 2023.

The IRS has all of the information necessary to determine the amount the amount of the 2023 RMD for the inherited IRA, should they choose to check to see for themselves if the amount take was sufficient to satisfy the RMD.  (However, the IRS has waived the penalty for not taking this RMD in 2023, so they will not be checking.) 

Also, your husband is not permitted to make a QCD from this inherited IRA (or any other IRA) until your husband reaches age 70½.