Deceased Taxpayer, IRA & Required Minimum Distribution

Based on the information below you must take distribution for 2023 after her death for you, and 2024. The distribution requirements are shown below for a beneficiary that is not a spouse and where the account owner began required minimum distributions (RMDs) before death.

The amount will be based on the information below but your financial institution will have the numbers for you.

IRS RMDs for Beneficiary

Distribute using Table I-Non Spouse

• Use younger of 1) beneficiary’s age or 2) owner’s age at birthday in year of death
• Determine beneficiary’s age at year-end following year of owner’s death
• Use oldest age of multiple beneficiaries
• Reduce beginning life expectancy by 1 for each subsequent year
• Can take owner’s RMD for year of death

Thanks for the information

Just to clarify, I'm not 71 1/2 years old. If that hasn't changed it's the age after which RMDs can be taken. Do I have to take the RMD anyways? Are there any other choices?

Thank you in advance,

Nck

Since she had already been required to take distributions, you also must take a distribution yearly based on the age of whoever is the younger person, which would be you.  In the tenth anniversary year you have to distribute 100%.

But first, you have to take the RMD that she missed in 2023

Her missed RMD is based on the value at end of 2022.

Your first RMD is based on the value at the end of 2023.

@FederalInquirer 

If it's not clear, this is all your taxable income.

use the custodian's inherited IRA distribution form and mark the box for non-spouse beneficiary.

You also have to submit a Signed W-4R for the withholding percentage you want.

@FederalInquirer 

Thank you for the to-the-point explanation

I see... That means that in her 2023 tax return nothing has to be entered about the RMD b/c she didn't take any, correct?

The RMD missed in 2023 I think will be in my 2024 tax return?

Thank you in advance

Nick

Yes, you will include both the 2023 and 2024 distributions on the 2024 tax return since it was missed in 2023. 

• Form W-4R (You can use this to have federal tax withheld from the payments if you choose)

As a reminder: If the account holder's death occurred after the required beginning date (your scenario), the non-spouse beneficiary may:

• Take distributions based on the longer of their own life expectancy or the account owner's remaining life expectancy.

@FederalInquirer 

Let me clarify that the mutual fund where my mother's IRA is held calculated the RMD for 2023 after I reported she had passed away, deducted 10% taxes, and sent the checks to me. Later on last year they issued a 1099-R with my SSN, so I have to file it with my 2023 tax return

Regarding the RMD for 2024 I think I have until Dec 31, 2024 to take it, correct?

Now I'm confused, b/c the C.S.Rep. from the mutual fund told me on the phone that I didn't have to take it now, but that I had to withdraw all the funds before 10 years. She said that for example, I could wait after my retirement (to be in a lower tax bracket), to start taking distributions??? Is she right?

TIA

the rep you talked to is going by half the old rule and needs to edjamacated.

You are subject to yearly RMD as I described because your mom started RMDs.

The old law did not have a 10-year rule.

@FederalInquirer