[Jbert]

Our Mom passed, left 2 IRA's. The IRA's were distributed to 6 beneficiary accounts. WE found out that Mom had only a partial RMD taken out. For ease, let's say the RMD was $12000.00 and she had taken half. Now the 6 beneficiaries must make up the remaining $6000.00.

How do we handle form 5329 and I assume it can be taken with the
1st year beneficiary RMD.


Thanks so much, I am so tired of googling.


JIM

[ebaines]

If she failed to take the minimum required distribution when alive, then the executor should include form 5329 with her final 1040 income tax return. The amount of penalty due is paid out of the estate's assets (along with other income taxes due). So no, the beneficiaries do not "make up" for the penalty - the estate does.