Missed RMDs from decedent's IRA

Technical topics regarding tax preparation.
#1
Skatter  
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IRA owner died in 2019 before taking her RMD for the year. Her estate was the named beneficiary of the IRA and her will named a son as the executor and the sole beneficiary of the funds in the IRA. Because of probate delays due to the pandemic the son didn't receive certification as personal representative until May 2021 and the estate couldn't get its EIN until later that month. I'm preparing the decedent's final return and the estate returns for 2019 and 2020. What should I do about the missed 2019 RMD? Attach Form 5329 to the estate's 1041 with a request for the waiver of the penalty and take the 2019 and 2021 RMDs for the estate asap? A second question: The bank intends to transfer the decedent's IRA into an IRA where the Estate is named as beneficiary and the tax ID is that of the Estate. Is it permissible for the bank to make a second transfer to the son as a beneficiary and use his SSN?
 

#2
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Skatter wrote:What should I do about the missed 2019 RMD? Attach Form 5329 to the estate's 1041 with a request for the waiver of the penalty and take the 2019 and 2021 RMDs for the estate asap?

Yes. Also, I would look at options for the timing of the RMD's for later than 2019, to try to minimize the amount taxed at the high estate income tax rates.

Skatter wrote:A second question: The bank intends to transfer the decedent's IRA into an IRA where the Estate is named as beneficiary and the tax ID is that of the Estate. Is it permissible for the bank to make a second transfer to the son as a beneficiary and use his SSN?

I have seen this sort of thing happen, but I don't know the exact details of when this is allowed. But most of the time that would make things better.
 


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