Who files form 5329 for missed 2016 RMD (due to illness then death in Jan 2017), Administrator of estate or beneficiary of IRA?

[ajvinson]

My Uncle's Investment company did not transfer RMD for 2016 in November due to funds needing to be liquidated to have enough to transfer to checking account, and he was hospitalized, confused, and did not know why $ was not in his checking, then he died in January 2017.Whose responsibility is it to file form 5329 for the missed RMD, the administrator of his estate or the beneficiary of his IRA?

[dmertz · Accepted solution]

Assuming that your uncle had already reached is required beginning date for RMDs (April 1 of the year following the year he reached age 70½), completing the RMD by the end of 2016 was your uncle's responsibility because he was still alive at the end of 2016.  2016 Form 5329 should be filed with your uncle's 2016 tax return, presumably being prepared by the administrator of your uncle's estate.

If the beneficiary of the IRA has now in 2017 completed your uncle's 2016 RMD, the 2016 Form 5329 filed with your uncle's 2016 tax return should request a waiver of the excess accumulation penalty.  However, the income from the distribution made to the beneficiary is reportable on the beneficiary's 2017 tax return.