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tom_udo
New Member

My father is deceased in 2020. I was one of two beneficiaries for a payment from his Retirement Plan. How much of this payment is a RMD?

 
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4 Replies
MaryK4
Expert Alumni

My father is deceased in 2020. I was one of two beneficiaries for a payment from his Retirement Plan. How much of this payment is a RMD?

If you don't take the required minimum distributions from your account, you will be subject to a penalty equal to 50% of the amount that should have been withdrawn.  You must withdraw all assets from the inherited IRA within 10 years.  As long as the account is depleted within this time-frame, the RMD penalties can generally be avoided.

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tom_udo
New Member

My father is deceased in 2020. I was one of two beneficiaries for a payment from his Retirement Plan. How much of this payment is a RMD?

TurboTax asks how much of this payment was a RMD? All, part, or none? Is it even an RMD being that he is deceased?

MaryK4
Expert Alumni

My father is deceased in 2020. I was one of two beneficiaries for a payment from his Retirement Plan. How much of this payment is a RMD?

The RMD is based on your father's age at the time of death.  If you received a payout for the account, you received the RMD because there is nothing left in the account.  If you only took a partial distribution, you can ask the plan administrator (the person/ company you received the 1099-R from).  

 

Required Minimum Distributions (RMDs) generally are minimum amounts that a retirement plan account owner must withdraw annually starting with the year that he or she reaches 72 (70 ½ if you reach 70 ½ before January 1, 2020), if later, the year in which he or she retires.

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dmertz
Level 15

My father is deceased in 2020. I was one of two beneficiaries for a payment from his Retirement Plan. How much of this payment is a RMD?

None of this distribution was RMD because the CARES Act waived RMDs for 2020.

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