What happens if I miss a required minimum distribution (RMD) from an inherited IRA?
Generally speaking, if an IRA beneficiary fails to take an RMD by the applicable deadline (generally December 31), the beneficiary is subject to a 50 percent excess accumulation penalty on the amount that should have been taken out. However, if a spouse beneficiary is the sole beneficiary of an inherited IRA and he misses an RMD, there is an added consequence. In such cases, the IRA ceases to be a beneficiary IRA and is deemed to be the surviving spouse’s own IRA.
Related Questions
- I am over 70½ and need to take a Required Minimum Distribution (RMD) from my IRA. Can I convert my assets to a Roth IRA before the RMD deadline to avoid taking this years distribution?
- How do I establish an automatic Required Minimum Distribution (RMD) on my Royal Neighbors of America IRA?
- What happens if I miss a required minimum distribution (RMD) from an inherited IRA?
