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Inherited IRA RMD
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d371
Level 1
yesterday
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I have a client that inherited an IRA. His brother passed away during 2023, however, everything was held up in probate until 2025. A RMD should have been made from this account by 12/31/24, however, my client just got access to the account. Is there any way around the penalty on the late distribution from the account?
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BobKamman
Level 15
yesterday
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If the brother was named as beneficiary, the IRA would not go through probate (although state law might have delayed its distribution if there were claims by creditors or a spouse). Are you sure that there is a penalty for 2024? IRS waived that for a lot of people who wanted to follow the earlier version of the 10-year rule (nothing required annually, all could be taken in 10th year).
d371
Level 1
yesterday
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Based on the information that I have received the brother had 2 options, Life expectancy Payments or the 10 year rule. His deadline for making this election was December 31, 2024 so since no election was made it defaults to the 10 year rule.
