I inherited an IRA in 2024 subject to the 10 year nonspouse rule. The deceased had RMDs yearly due to their age. Is it ok if i did not take RMD in 2024 due to waiver?

[sylgil99]

As i understand it there is a penalty waiver by the IRS , however, I also heard for 2024 I am supposed to continue the deceased RMD and then in 2025 would start my RMD calculation based on my expectancy (still having to cash out in 10 years) Thanks! Want to make sure its ok if I skipped the deceased RMD in 2024 and not have to file any form.

[KrisD15]

If you inherited the IRA in 2024, it's OK if you didn't make a distribution, as you said, the IRS is waiving penalties for tax year 2024, however it would not be OK if the original owner missed their Required Minimum Distribution )RMD) for tax year 2024. 

If the original owner was of the age to require distributions, and none was taken for tax year 2024, you would need to take that RMD. 

The waiver for that is that the deadline is extended to (for you) December 31, 2025. 

So  if no RMD was made for 2024, (and one was required), you'll need to make two before the end of the year, one for the original owner's 2024 RMD and one for your 2025 distribution. 

If the owner had not yet reached the age of Required Minimum Distributions, no distributions are mandatory until year 10. 

[dmertz]

The waiver is only for beneficiary RMDs under the 10-year rule.  There is no general waiver of the penalty for failing to complete the outstanding portion of the decedent's 2024 RMD.  However, as KrisD15 said, you (and any other beneficiaries of this IRA) have until December 31, 2025 to complete the decedent's 2024 RMD.  This distribution must be completed along with your own 2025 beneficiary RMD and it will all be reportable on your 2025 tax return.

Due to the automatic extension of the deadline to the end of the year following the year of death, there is no need to file a 2024 Form 5329 requesting a waiver of the excess-accumulation penalty as long as the decedent's 2024 RMD is completed by the end of 2025.