RMD for inherited IRA

[sskip0521]

My mother died in 2021 before taking her RMD. Her IRA was divided between 3 non-spouse beneficiaries. All 3 beneficiaries cashed out their inherited IRAs. When TT asks what portion of the distribution applies to the RMD, does each beneficiary have to specify 1/3 of her RMD? In other words, does it have to be split equally between the beneficiaries, or does it matter?

[MinhT1]

It does not really matter if all three of you have cashed out your share. You can answer in TurboTax that your RMD obligation is satisfied.

[sskip0521]

Thank you for your reply. The RMD was satisfied when the inherited accounts were cashed out, and TT wants me to enter a specific $ amount - how much of the distribution applies to the RMD. I'm wondering if it must be divided equally between the beneficiaries; my research has given me conflicting information.

[HelenC12]

If TurboTax wants a specific amount, enter the total distribution amount. The other beneficiaries may do the same.  One thing you should know is that, no matter what you answer, the information is only used to see if you owe penalty. These numbers don't appear on your tax return.

• Since you took the full balance of the account, you do not owe a penalty.

The trustee generally knows how much should have been the RMD amount. 

Source: Expert JulieS