Distribution from deceased parent non qualified annuity

Forum|Forum|3 years ago
April 8, 2023
2 replies
53 views

My mother-in-law died in December of 2021. She had already taken her 2021 RMD. Due to timing of her death, it was 2022 before my wife and her sister liquidated the account. TT is asking me what portion if any of the withdrawal is an RMD. I believe none of it was as she was already deceased and therefore not required to make an RMD for 2022, obviously. But what should I tell TT; "all of it was an RMD", "none of it was", or do I calculate what it would have been? I'm confused as to why a lump sum total distribution for a deceased person's account is even being asked.

Not A Product Question

Best answer by JulieS

Yes, you should answer, none of it was a Required Minimum Distribution (RMD) because there is no RMD for a non-qualified annuity regardless of other details.

JulieSAnswer

Level 15

Yes, you should answer, none of it was a Required Minimum Distribution (RMD) because there is no RMD for a non-qualified annuity regardless of other details.

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travis65ssAuthor

Level 2

Thanks JulieS

I was concerned because TT seemed to imply there would be a tax penalty if it wasn’t a RMD. I would have felt better if there was an option saying it didn’t pertain due to her already being deceased beyond the year of her death.