1. Which years require filing for waivers of the 50% IRS penalty for late RMDs? I agree wit the EA here, if the 2012 DIst was done before the end of the Estate's tax year
But wouldn't the 2012 esttae year be Oct 2012, not Oct 2013?
2. Who files the waiver, the Estate or the 4 subsequent beneficiaries? Again, I would agress, because during that tim the estate WAS the beneficiary (quite honestly I'm surprised that the bene's didn't simply inherit as per the will here... someone must have made a mistake, regarding the beneficiaries not beng on file?
OCt 2012 through 2013
Because the ESTATE has already taken
and that relates to the next questions, no there should not be RMDs taken twice in the same tax year
although they don't match ... Calendar vs fiscal, the 2013 RMD has been taken
It's interesting that the estate doesn't pay the taxes for the years it TOOK the RMD, however, ... does the PLR address this in some way?
No clue as I haven't read the ruling. I think the ruling simply states my wife and the other 3 benes get to be benes of the IRA. The EA had the 4 benes individually pay the tax as it said the forthcoming form K-1s to the denes will show each bene's share of the rmds.
Now, it WOULD make sense that the bene's pay tax on the BALANCE? But if newly created beneficial IRAs were created then they won't have RMD (and taxes) until 2014 in my opinion
Ahhh ok, that means the trust took a deduction for the distribution so THEY have to pay the tax ... that makes sense
AND you want it that way ... as the tax bralets of the trust ae much lower (higher tax on the same amount of money)
Not over $2,450 15% of the taxable income
Over $2,450 but $367.50 plus 25% ofnot over $5,700 the excess over $2,450
Over $5,700 but $1,180 plus 28% ofnot over $8,750 the excess over $5,700
Over $8,750 but $2,034 plus 33% ofnot over $11,950 the excess over $8,750
Over $11,950 $3,090 plus 39.6% of the excess over $11,950
OK so to recap, based on the info I provided you, your opinion is that only the late 2011 RMD requires a waiver request, which will be filed by the Estate. And my wife does not need to take her own 2013 RMD by 12/31/13 that would be in addition to the 2013 RMD the estate already took. Does that sound right?
You have it ... what IRS will want to see is a 2013 tax year RMD taken and it was, otherwise you have double taxation
Ok. You have been very helpful and I am very appreciative of your no-nonsense assistance. Thank you very much.
OR set me up as your preferred expert on your home page.
Regardless, thanks again,