Leaderboard

Grandmabee, I always find your answers informative. And, Judy's. This board is a great tool.

You always go into great detail and explain everything, I seem to make my answers too short and to the point without the details. You are an asset to this group.

Upon the death of the original owner, the designated beneficiary(ies) becomes the owner of the IRA and has the responsibility to take the RMD in the year of death if the deceased didn't do so, and the beneficiary would also have the responsibility to rectify any shortfall because of missed RMDs. Each beneficiary should take his or her share of the distributions for the shortfall as soon as possible after the shortfall becomes known, and it can be taken all as one lump sum. Prepare a schedule showing each year's RMD that the deceased should have taken and, if more than one beneficiary, show how each of the year's RMDs are split up among them. Using the appropriate year's forms, each beneficiary completes separate 5329s for each year that a shortfall occurred, and requests penalty abatement on each of those forms. Because these are for prior years, the 5329s must be filed separate from the 2019 return and must be paper-filed, e-filing not allowed. I'd file them all together with an explanation that includes the request for abatement and the schedule showing the shortfall and its allocation to each of the heirs. Going forward, each beneficiary will also follow the distribution rules for inherited IRAs by nonspouse beneficiaries of decedent that was over 70.5 years of age and dying in 2019 or earlier.

Advice taken Lion except I needed an excuse to go to our state liquor store and get me a bottle of Kentucky bourbon. Hey this is Virginia guys. Or gals.

My husband and some clients would agree and would prefer shorter answers.

We all need a good excuse to visit the liquor store... and who said the liquor store are not essential???

Christian. We can't do much with information we gather with the purpose of preparing a tax return. So do vent here. We understand. But, then take a deep breath and move on to a better client. And, a Friday night cocktail.

Or it could of been money a cousin repaid back

Could have bonus depreciation of 50k on equipment bought with loans. Seemed like a good idea at the time.