My mother died last year (2024) and she was already taking RMD from her IRA. She had taken 1/4 of the RMD, and the beneficiaries were responsible for taking the remaining 3/4 of her RMD. Several of beneficiaries withdrew more than my mother's required RMD. I took some the her required RMD and received a Form 1099-R from my Inherited IRA account. I realize that I have to start taking RMD on the inherited IRA this year based on the OLDEST's beneficiaries age.
Question1: I reported my mother's 1099-R on her 2024 Tax return, and the remaining amount was documented on the return on Form 5329-T with 'Explanation Statement' explaining that the remaining portion of her RMD were withdrawn by several beneficiaries. Is that ALL I need to do on mother's return?
Question 2: I received a 1099-R on my portion of the Inherited IRA. Do I report the amount on the 1099-R as an RMD?
Thanks for your help.
"I realize that I have to start taking RMD on the inherited IRA this year based on the OLDEST's beneficiaries age."
Only if there was no designated beneficiary on the IRA, otherwise each beneficiary will use their own age as long as the original inherited IRA is split into separate IRAs, one for each of the designated beneficiaries.
Q1: On your mother's tax return, report as the required amount of RMD only the amount that was actually taken. The remainder of the RMD became the responsibility of the beneficiaries and not your mother's responsibility upon her death. Your mother's tax return should not include Form 5329.
Q1: When preparing your own tax return, similarly indicate that the amount required was the amount that you received. This will similarly prevent Form 5329 from being prepared.
"I realize that I have to start taking RMD on the inherited IRA this year based on the OLDEST's beneficiaries age."
Only if there was no designated beneficiary on the IRA, otherwise each beneficiary will use their own age as long as the original inherited IRA is split into separate IRAs, one for each of the designated beneficiaries.
Q1: On your mother's tax return, report as the required amount of RMD only the amount that was actually taken. The remainder of the RMD became the responsibility of the beneficiaries and not your mother's responsibility upon her death. Your mother's tax return should not include Form 5329.
Q1: When preparing your own tax return, similarly indicate that the amount required was the amount that you received. This will similarly prevent Form 5329 from being prepared.