Dear Trust Officer:
My 80-year-old mother recently died. Does that end the need for her required minimum distributions (RMDs) from her IRA? I don’t think Mom took her full RMD for 2024, she was taking it monthly, sort of like a pension.—INTERESTED HEIR
Dear INTERESTED:
No, RMDs go on and on, until the account has been fully distributed and taxed. The full RMD for the year of death must happen, and then surviving beneficiaries will have to worry about their own RMDs.
I do have some good news to report, however. The usual deadline for the RMD is December 31 (except for the very first RMD, when the deadline is April 1 of the following year). But in IRS regulations issued this summer, the Service said that there will be a one-year grace period for the RMD due in the year of a taxpayer’s death. That RMD must happen by December 31 of the year following the taxpayer’s death.
This is an area where the stakes are very high, mistakes can be costly. Consult with your tax professionals to learn more.
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