IRA - Spidell


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    • #188177

      Have a client (daughter) who inherited and IRA.  The decedent with the IRA passed 5 years ago.  The court just resolved the estate and the daughter just found out about the IRA.   Can we go back and amend the previous 5 years and take the required distributions, ask for waiver of the penalties?  This will enable her not to have to take all the income in the current year.

    • #188269
      Sandy Weiner

      Unfortunately you must report the RMD in the year you receive it, so you can not claim it on amended returns for prior years. If the IRA is fully distributed by December 31 of the fifth year after the IRA owner’s death there will be no penalties. If this date has passed, this situation should certainly qualify for penalty abatement.

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