RMD for deceased filer not met. But met by distribution from inherited IRA.

[smbren]

So my Dad passed away in 2024.  The 2 IRA's were split between 3 children.  There was a whole $94 short for the RMD.  However, this was met by a distribution from the inherited IRA as I was aware that it would be short and undertood this was the way to do that, that it must be withdrawn by the benificiary(ies).

But in TT, when filing his taxes and putting in the 10990-R's, TT realizes he is short on the RMD and then goes into asking if a corrective distribution was made.  But then explains it's a 25% fine, or 10% if justified.  But since I did do the distribution from the inherited IRA by the end of the year (but I believe I have until the next year to complete it or at least until filing his taxes to avoid a penalt), so I don't quite understand how to put this into TT properly without having justify a corrective distribution which seems to imply it was done late and applicable for the fine, yet it was withdrawn by Dec 31st. 

Am I missing something in TT?  Or maybe I misunderstood what I was told/read on the beneficiariy(ies) taking the distribution by end of year?



A fine of 10 or even 25% on this small amount is not  big deal, but I am just trying to do it the right way. 

[dmertz · Accepted solution]

Upon the death of your father, responsibility to complete his RMD transferred to the beneficiaries.  With regard to your father's tax return, when TurboTax asks how much RMD he was required to take, enter only the amount that he actually took.  The remaining $94 being the responsibility of the beneficiaries needs to be split in some way between the beneficiaries and shown on the beneficiaries' tax returns.

[smbren]

Great!  That makes sense.  I hadn't gotten to my return yet.  I knew this would come on mine too and it seems TT is set to ask about inherited IRA's, so that part will probably go rather smooth.  But that makes sense to only document the amounts that he was able to withdraw.