Comments for Aegis Financial Advisory http://www.aegisadvisory.com Client-Centered Planning for Life Thu, 15 Dec 2011 15:24:20 +0000 hourly 1 http://wordpress.org/?v=3.2.1 Comment on IRA to Roth Conversions in 2010 by aegis http://www.aegisadvisory.com/2009/12/ira-to-roth-conversions-in-2010.html#comment-28 aegis Thu, 15 Dec 2011 15:24:20 +0000 http://68.233.24.53/~aegis/2009/12/ira-to-roth-conversions-in-2010.html#comment-28 Thanks for the question. In the year of death, if the decedent did not take their required RMD for the year, in whole or in part, the responsibility for taking it flows to the IRA beneficiary, assuming the decedent's estate was not a beneficiary of the IRA. Therefore, the RMD is reported by the beneficiary, not the estate of the decedent. Note that the RMD is treated as IRD and if the estate is subject to estate tax then the beneficiary is entitled to a deduction for income tax when the RMD is taken. I hope this helps. Thanks for the question.

In the year of death, if the decedent did not take their required RMD for the year, in whole or in part, the responsibility for taking it flows to the IRA beneficiary, assuming the decedent’s estate was not a beneficiary of the IRA. Therefore, the RMD is reported by the beneficiary, not the estate of the decedent. Note that the RMD is treated as IRD and if the estate is subject to estate tax then the beneficiary is entitled to a deduction for income tax when the RMD is taken.

I hope this helps.

]]> Comment on IRA to Roth Conversions in 2010 by fidelity roth ira http://www.aegisadvisory.com/2009/12/ira-to-roth-conversions-in-2010.html#comment-27 fidelity roth ira Thu, 15 Dec 2011 10:19:46 +0000 http://68.233.24.53/~aegis/2009/12/ira-to-roth-conversions-in-2010.html#comment-27 75 year old IRA holder dies in 2011 before taking his RMD for the year. I am fairly certain that the RMD amount which still must be paid (cannot be rolled over even by a spouse/beneficiary) should be paid to the designated beneficiary of the IRA. My question: who reports the RMD in their tax return for 2011? The decedent or the beneficiary? I know in a surviving spouse and joint return situation it will make little or no difference, but my concern is with the non-spouse beneficiary situation. 75 year old IRA holder dies in 2011 before taking his RMD for the year. I am fairly certain that the RMD amount which still must be paid (cannot be rolled over even by a spouse/beneficiary) should be paid to the designated beneficiary of the IRA. My question: who reports the RMD in their tax return for 2011? The decedent or the beneficiary? I know in a surviving spouse and joint return situation it will make little or no difference, but my concern is with the non-spouse beneficiary situation.

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