A:

The five-year rule applies only when the IRA owner dies before the required beginning date (RBD). If the IRA owner dies after the RBD and did not satisfy the required minimum distribution (RMD) for the year of death, the beneficiary must satisfy the RMD on behalf of the deceased. The amount must be calculated as though the IRA owner were still alive; this means the amount must be calculated using the uniform life table. The amount must be reported in the name of the deceased and the beneficiary and the tax identification number of the beneficiary.

All subsequent distributions should be calculated on a non-recalculated basis over the life expectancy of the beneficiary or the remaining life expectancy of the deceased, whichever is longer.

This question was answered by Denise Appleby
(
Contact Denise)

RELATED FAQS

  1. When can benefits be received from a provident fund?

    Find out when participants in provident funds can begin receiving benefits, including how funds can be used to finance important ...
  2. Is Social Security Income a perpetuity?

    Find out why Social Security income is not classified as a perpetuity, including what constitutes a perpetuity and the basics ...
  3. What types of investments are allowed in a provident fund?

    Read about the types of investments allowed in various provident funds around the world, including the Indian, Malaysian ...
  4. How does a provident fund compare to U.S. Social Security?

    Find out how provident funds compare to the U.S. Social Security program, including examples of income limits and contribution ...
RELATED TERMS
  1. See-Through Trust

    A trust that is treated as the beneficiary of an individual retirement ...
  2. Settlor

    The entity that establishes a trust. The settlor also goes by ...
  3. Backdoor Roth IRA

    A method that taxpayers can use to place retirement savings in ...
  4. Personal Representative

    The executor or administrator for the estate of a deceased person. ...
  5. Current Service Benefit

    The amount of pension benefit accrued by an employee who had ...
  6. Contingent Beneficiary

    1. A beneficiary specified by an insurance contract holder who ...

You May Also Like

Related Articles
  1. Retirement

    Does it Make Sense to Have an MLP in ...

  2. Entrepreneurship

    MLPs: How They Are Taxed

  3. Retirement

    Top Tips for Rebalancing 401(k) Assets

  4. Professionals

    Few Target-Date Managers Invest in Their ...

  5. Fundamental Analysis

    Should You Hire an Advisor or DIY Your ...

Trading Center
×

You are using adblocking software

Want access to all of Investopedia? Add us to your “whitelist”
so you'll never miss a feature!