Spouse passed away in 2024 and didn't take his RMD. I assumed his IRA in 2025 but also didn't take his RMD. Can I do so later in the year to reduce the penalty?

[Opus 17]

It's only been 2025 for a few days.  Do you mean your spouse died in 2023, and you did not take an RMD for 2023 or 2024?

Also, was your spouse older than their RMD beginning age, and how old are you?

And, when your spouse dies, you have 3 options with the IRA. 

1. Treat it as an inherited IRA.

2. Treat it as your own IRA but keep it separate.

3. Treat it as your own IRA and roll it over into your own IRA.

Which did you do?

[tscott1250]

Spouse passed in Aug 2024.  He was 87 years. I am treating it as my own IRA but keeping it separate.   I didn't take his RMD in 2024.  Can I take it now, even though the IRA is now in my name. 

[Opus 17]

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@tscott1250 wrote:

Spouse passed in Aug 2024.  He was 87 years. I am treating it as my own IRA but keeping it separate.   I didn't take his RMD in 2024.  Can I take it now, even though the IRA is now in my name. 

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For the missed RMD in 2024, take it now.  Then, on your 2024 tax return, you must file a form 5329 for your spouse, indicating you missed the RMD, how much it was, and request a waiver of the penalty.  You will say you took the RMD as soon as you realized (Jan 2025).  Note that this does not count as a 2025 RMD, so you will still need to take that some time during the year.

However, remember that an RMD is only the minimum amount you need to withdraw, it is not a special transaction.  If his RMD was $5000, and you have been withdrawing $500 per month for living expenses, then you met the requirement because the amount you withdrew is more than the minimum you needed to withdraw.

Here are some posts on how to file the 5329 and waiver request using Turbotax.  It must be done using the version installed on your own computer from a download, it can't be done online.  Or, you may want to use Live Assistance or Live Full service to have a tax pro help you.

https://ttlc.intuit.com/community/retirement/discussion/2023-missed-rmd-how-to-file-5329-in-turbotax...

https://ttlc.intuit.com/community/taxes/discussion/missed-rmd/00/3232857

[dmertz]

You have until the end of 2025 to complete your spouse's 2024 RMD by taking the distribution from any of your traditional IRAs now that you have moved the account to your own name.  If you do so, waiver of the excess-accumulation penalty is automatic and there is no need to indicate to 2024 TurboTax that the RMD was required to be taken for 2024.  The distribution will be reportable on your 2025 tax return as if it was a 2025 RMD.