Tax

Have a Tax Question? Ask a Tax Expert

Ask an Expert,
Get an Answer ASAP!

Tax
This answer was rated:

Lev - I just asked question about my wifes mother who died

Lev - I just asked...
Lev - I just asked question about my wife's mother who died this year and tax consequences of IRA distribution. The mother had not taken the 2013 RMD. How do I handle the RMD for 2013?
Show More
Show Less
Ask Your Own Tax Question
Answered in 7 minutes by:
6/28/2013
Lev
Lev, Tax Advisor
Category: Tax
Satisfied Customers: 30,162
Experience: Taxes, Immigration, Labor Relations
Verified

LEV :

Hi and welcome to Just Answer!
2013 RMD distribution is generally due by Dec 31 2013 - so there is no penalty for not taken RMD as long as it will be taken before that date.
As long as distribution is taken - there is no special treatment for RMD - on the tax return it will be reported as distribution.
Taxpayers may take distributions more than RMD - that is OK - so if you will take more than RMD amount in 2013 - there is no issue.

Customer:

So if it is distributed in 2013 it goes on the mother's tax even if it is distributed to the beneficiary? In this case the entire IRA could be distributed from the mother's IRA and the mother would owe no taxes for 2013 since the mother's income is low enough even with the distribution

Ask Your Own Tax Question
Lane
Lane, JD, CFP, MBA, CRPS
Category: Tax
Satisfied Customers: 12,876
Experience: Law Degree, specialization in Tax Law and Corporate Law, CFP and MBA, Providing Financial & Tax advice since 1986
Verified

Hi,

I have a different answer.

As the beneficiary of the IRA, normally the choice of how to take your own (as a non-spouse beneficiary) distributions is (1) to take it out over your life expectancy or (2) over - better, said, by the end of - a five year period.

But in he case of an IRA where the RMD had already started, (where death occurred after the Required Beginning Date) you only have the life expectancy method.

If the IRA holder is deceased, the question becomes how the beneficiary takes out the minimum amounts - as the person who has passed no longer has the requirement.

Remember IRA beneficiary designations (just as with qualified plan and life insurance beneficiary designations) pass outside of probate through "operation of agreement."

Here's an excellent overview:

https://personal.vanguard.com/us/whatweoffer/ira/inheritediranonspousermd
Lane
Lane, JD, CFP, MBA, CRPS
Category: Tax
Satisfied Customers: 12,876
Experience: Law Degree, specialization in Tax Law and Corporate Law, CFP and MBA, Providing Financial & Tax advice since 1986
Verified
Lane and 87 other Tax Specialists are ready to help you
Ask your own question now


Thanks much!

Let me know if I can help further,

Lane
Ask Your Own Tax Question
Ask Lane Your Own Question
Lane
Lane
Lane, JD, CFP, MBA, CRPS
Category: Tax
Satisfied Customers: 12,876
12,876 Satisfied Customers
Experience: Law Degree, specialization in Tax Law and Corporate Law, CFP and MBA, Providing Financial & Tax advice since 1986

Lane is online now

A new question is answered every 9 seconds

How JustAnswer works:

  • Ask an ExpertExperts are full of valuable knowledge and are ready to help with any question. Credentials confirmed by a Fortune 500 verification firm.
  • Get a Professional AnswerVia email, text message, or notification as you wait on our site. Ask follow up questions if you need to.
  • 100% Satisfaction GuaranteeRate the answer you receive.

JustAnswer in the News:

Ask-a-doc Web sites: If you've got a quick question, you can try to get an answer from sites that say they have various specialists on hand to give quick answers... Justanswer.com.
JustAnswer.com...has seen a spike since October in legal questions from readers about layoffs, unemployment and severance.
Web sites like justanswer.com/legal
...leave nothing to chance.
Traffic on JustAnswer rose 14 percent...and had nearly 400,000 page views in 30 days...inquiries related to stress, high blood pressure, drinking and heart pain jumped 33 percent.
Tory Johnson, GMA Workplace Contributor, discusses work-from-home jobs, such as JustAnswer in which verified Experts answer people’s questions.
I will tell you that...the things you have to go through to be an Expert are quite rigorous.

What Customers are Saying:

I really was impressed with the prompt response. Your expert was not only a tax expert, but a people expert!!! Her genuine and caring attitude came across in her response...

T.G.WMatteson, IL

I WON!!! I just wanted you to know that your original answer gave me the courage and confidence to go into yesterday's audit ready to fight.

BonnieChesnee, SC

Great service. Answered my complex tax question in detail and provided a lot of additional useful information for my specific situation.

JohnMinneapolis, MN

Excellent information, very quick reply. The experts really take the time to address your questions, it is well worth the fee, for the peace of mind they can provide you with.

OrvilleHesperia, California

Wonderful service, prompt, efficient, and accurate. Couldn't have asked for more. I cannot thank you enough for your help.

Mary C.Freshfield, Liverpool, UK

This expert is wonderful. They truly know what they are talking about, and they actually care about you. They really helped put my nerves at ease. Thank you so much!!!!

AlexLos Angeles, CA

Thank you for all your help. It is nice to know that this service is here for people like myself, who need answers fast and are not sure who to consult.

GPHesperia, CA

< Previous | Next >

Meet the Experts:

Wallstreet Esq.

Wallstreet Esq.

Tax Attorney

586 satisfied customers

10 years experience

Mark D

Mark D

Enrolled Agent

1,300 satisfied customers

MBA, EA, Specializing in Business and Individual Tax Returns and Issues

Richard

Richard

Tax Attorney

4,310 satisfied customers

29 years of experience as a tax, real estate, and business attorney.

Robin D.

Robin D.

Senior Tax Advisor 4

13,695 satisfied customers

15years with H & R Block. Divisional leader, Instructor

Megan C

Megan C

Certified Public Accountant (CPA)

8,651 satisfied customers

Licensed CPA, CFE, CMA, CGMA who teaches accounting courses at Master's Level

jgordosea

jgordosea

Enrolled Agent

2,885 satisfied customers

I've prepared all types of taxes since 1987.

R. Klein, EA

R. Klein, EA

Enrolled Agent

1,839 satisfied customers

Over 20 Years experience

< Previous | Next >

Related Tax Questions
A trustee cashed in an ira but didn't distribute funds to
A trustee cashed in an ira but didn't distribute funds to the beneficiaries before the end of the year … read more
Chad CFP ®
Chad CFP ®
Certified Financial Planner(R), Pro
Master\u0027s Degree
736 satisfied customers
I have read where are no early distribution penalties for
I have read where are no early distribution penalties for early withdrawals on inherited IRAs. What if the beneficiary in under 59 1/2?… read more
Chad CFP ®
Chad CFP ®
Certified Financial Planner(R), Pro
Master\u0027s Degree
736 satisfied customers
I have an IRA account and the beneficiary on the account is
I have an IRA account and the beneficiary on the account is a Trust that I set up. So if I die, the IRA money goes into the Trust. I would like to know how that IRA money is taxed if I die. My total e… read more
Robin D.
Robin D.
Senior Tax Advisor 4
Vocational, Technical or Trade School
13,695 satisfied customers
Can I report rental income in my tax return on a property
Can I report rental income in my tax return on a property thar is owned by my father? He does not live in the US is not a US citizen and can sign a document to allow me to receive the rental… read more
Robin D.
Robin D.
Senior Tax Advisor 4
Vocational, Technical or Trade School
13,695 satisfied customers
What does "Distributions Other Than Dividend Distributions"
what does "Distributions Other Than Dividend Distributions" mean on a corporate tax return? Was the amount listed actually giving to the shareholder? … read more
Chad CFP ®
Chad CFP ®
Certified Financial Planner(R), Pro
Master\u0027s Degree
736 satisfied customers
Beneficiary IRA tax question for a CPA. I have a deceased
Beneficiary IRA tax question for a CPA. Hi! I have a deceased client that named her Trust as the IRA beneficiary. The custodian won't send the 4 charities (all charities, no natural persons) directly … read more
PDtax
PDtax
Owner
Master\u0027s Degree
1 satisfied customers
Need advice for my tax return. Only income: Airbnb. I'm
Need advice for my tax return. Only income: Airbnb. I'm renting a room and sub renting it through Airbnb … read more
abci168
abci168
Principal
27 satisfied customers
I filed for an extension to file my 2017 income tax return.
I filed for an extension to file my 2017 income tax return. I recently suffered a stroke - 6 weeks ago - and have been unable to finalize my return. I should be able to file it within the next 30 days… read more
Barbara
Barbara
Enrolled Agent, Paralegal
3,483 satisfied customers
Related to my previous question are the US beneficiaries of
Good afternoon, related to my previous question are the US beneficiaries of an offshore/ foreign trust obliged to report to the IRS that they are beneficiaries even when the trust had not distributed … read more
abci168
abci168
Principal
27 satisfied customers
1041 for an estate: Received a distribution from a qualified
1041 for an estate: Received a distribution from a qualified tuition program. The deceased was not the recipient. How is the distribution treated. There is earnings of 30K. I cannot find anything in I… read more
Chad CFP ®
Chad CFP ®
Certified Financial Planner(R), Pro
Master\u0027s Degree
736 satisfied customers
Once the original single "income beneficiary" of a QSST
Once the original single "income beneficiary" of a QSST Trust dies, and the secondary principal beneficiaries take over, how do you report that on the QSST? … read more
PDtax
PDtax
Owner
Master\u0027s Degree
1 satisfied customers
If estate is beneficiary of IRA, where deceased was
If estate is beneficiary of IRA, where deceased was receiving RMD, can it be paid out over remaining life expectancy of deceased? … read more
Lev
Lev
Tax Advisor
30,162 satisfied customers
Can franking credit on an Australian income tax return be
Can franking credit on an Australian income tax return be used on Form 1116 as tax paid on the franked distributions? … read more
Robin D.
Robin D.
Senior Tax Advisor 4
Vocational, Technical or Trade School
13,695 satisfied customers
Rules on Rollovers (Return of a non-taxed IRA Distribution).
Rules on Rollovers (Return of a non-taxed IRA Distribution). Over 70-1/2 years old) … read more
PDtax
PDtax
Owner
Master\u0027s Degree
1 satisfied customers
If a beneficiary of an irrevocable trust (the grantor was
If a beneficiary of an irrevocable trust (the grantor was his father, now deceased) has medical expenses paid out of the trust, are they able to deduct those expenses from their personal return?… read more
Lev
Lev
Tax Advisor
30,162 satisfied customers
Robin, I am reading that the beneficiaries of a revocable
Hi Robin,I am reading that the beneficiaries of a revocable trust don't pay taxes on the distributions. Please see below the text I read. So if my mom (a non-resident, foreign person living outside th… read more
Robin D.
Robin D.
Senior Tax Advisor 4
Vocational, Technical or Trade School
13,695 satisfied customers
If Estate/Trust has no obligation to distribute income, and
If Estate/Trust has no obligation to distribute income, and only income was decedent's IRA MRD taken by estate after decedent's death, and this amount is mostly offset by Estate/Trust administrative e… read more
Lev
Lev
Tax Advisor
30,162 satisfied customers
I am ready to distribute the funds to the beneficiaries as
I am ready to distribute the funds to the beneficiaries as the Executor of my mom's Estate. The Estate has no debts and no earned income (No Interest, No Investments etc..) only the following funds it… read more
Lane
Lane
JD, CFP, MBA, CRPS
12,876 satisfied customers
Disclaimer: Information in questions, answers, and other posts on this site ("Posts") comes from individual users, not JustAnswer; JustAnswer is not responsible for Posts. Posts are for general information, are not intended to substitute for informed professional advice (medical, legal, veterinary, financial, etc.), or to establish a professional-client relationship. The site and services are provided "as is" with no warranty or representations by JustAnswer regarding the qualifications of Experts. To see what credentials have been verified by a third-party service, please click on the "Verified" symbol in some Experts' profiles. JustAnswer is not intended or designed for EMERGENCY questions which should be directed immediately by telephone or in-person to qualified professionals.

Disclaimer: Information in questions, answers, and other posts on this site ("Posts") comes from individual users, not JustAnswer; JustAnswer is not responsible for Posts. Posts are for general information, are not intended to substitute for informed professional advice (medical, legal, veterinary, financial, etc.), or to establish a professional-client relationship. The site and services are provided "as is" with no warranty or representations by JustAnswer regarding the qualifications of Experts. To see what credentials have been verified by a third-party service, please click on the "Verified" symbol in some Experts' profiles. JustAnswer is not intended or designed for EMERGENCY questions which should be directed immediately by telephone or in-person to qualified professionals.

Show MoreShow Less

Ask Your Question

x