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#5
10-22-2003, 03:37 AM
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 Re: Help: didn't take RMD from inherited IRAs - quote - > > This election must also be taken by the December 31, 2003,
No extension, at least as of yet.> > according to the publication. I DON'T know if the deadline > > was extended by a recent change in law. > That '03 deadline is the latest info in the '02 Pub 590. If > there has been an extension, someone please post it here. > Thanks. << -------------------------------------------------> << The Charter and the Guidelines for submitting > << messages to this newsgroup are at www.asktax.org > << -------------------------------------------------> |
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#4
10-20-2003, 12:53 AM
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| Re: Help: didn't take RMD from inherited IRAs - quote - > > If you do so before the end of the fifth year, you can
That '03 deadline is the latest info in the '02 Pub 590. If> > change your mind and elect to take RMD withdrawals over > > your life expectancy, befinning with your age in the > > year following the decedent's death. Pub 590 (pages > > 30-32) has the details of how to do this. > This election must also be taken by the December 31, 2003, > according to the publication. I DON'T know if the deadline > was extended by a recent change in law. there has been an extension, someone please post it here. Thanks. -HW "Skip" Weldon Columbia, SC << -------------------------------------------------> << The Charter and the Guidelines for submitting > << messages to this newsgroup are at www.asktax.org > << -------------------------------------------------> |
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#3
10-18-2003, 06:53 AM
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| Re: Help: didn't take RMD from inherited IRAs Herb Smith wrote: (Summary of Herb's reply.) Herb states that OP is required to complete withdrawals no later than the end of the fifth year, which is December 31, 2006. He goes on to say: - quote - > If you do so before the end of the fifth year, you can
This election must also be taken by the December 31, 2003,> change your mind and elect to take RMD withdrawals over > your life expectancy, befinning with your age in the > year following the decedent's death. Pub 590 (pages > 30-32) has the details of how to do this. according to the publication. I DON'T know if the deadline was extended by a recent change in law. -- This account is subject to a persistent MS Blaster and SWEN attack. I think I've got the problem resolved, but, if you E-mail me and it bounces, a second try might work. However, please reply in newsgroup. << -------------------------------------------------> << The Charter and the Guidelines for submitting > << messages to this newsgroup are at www.asktax.org > << -------------------------------------------------> |
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#2
10-11-2003, 07:41 AM
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| Re: Help: didn't take RMD from inherited IRAs Eric Goodill wrote: - quote - > My mom died in 2001, and I received an inherited
First, someone had to take HER RMD in 2001. If that wasn't> traditional IRA and an inherited Roth IRA. My mom was 72 > when she died, so she was already being forced to take > yearly required minimum distributions (RMDs) to drain her > IRAs (not sure if this applies to both traditional and Roth > IRA). My understanding is that since she was forced to take > RMDs, so am I. I further understand that the first withdrawl > must occur no later that Dec 31 of the calendar year after > the one she died in. So my mom died in 2001, and I would > have to have made a withdrawl by Dec 31, 2002. done penalties apply again. But for your stated question: - quote - > 1. Should I just take the 2002 RMD now and report it on my
Not an option.> 2002 return as if I'd taken it in 2002? - quote - > 2. Should I take the 2002 RMD in 2003 and report it on my
50% penalty on the amount of RMD not taken.> 2003 return? Again are there penalties? I'd also take my > 2003 RMD during 2003. - quote - > 3. Should I just start taking RMDs in 2003 and hope nobody
It probably won't work.> notices? - quote - > Are traditional and Roth IRAs the treated the same regarding
No.> RMDs? -- This account is subject to a persistent MS Blaster and SWEN attack. I think I've got the problem resolved, but, if you E-mail me and it bounces, a second try might work. However, please reply in newsgroup. << -------------------------------------------------> << The Charter and the Guidelines for submitting > << messages to this newsgroup are at www.asktax.org > << -------------------------------------------------> |
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#1
10-11-2003, 07:22 AM
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| Re: Help: didn't take RMD from inherited IRAs Eric Goodill <nospam[at]email.com> wrote: - quote - > My mom died in 2001, and I received an inherited
Relevant information is covered in detail in IRS Pub 590.> traditional IRA and an inherited Roth IRA. My mom was 72 > when she died, so she was already being forced to take > yearly required minimum distributions (RMDs) to drain her > IRAs (not sure if this applies to both traditional and Roth > IRA). My understanding is that since she was forced to take > RMDs, so am I. I further understand that the first withdrawl > must occur no later that Dec 31 of the calendar year after > the one she died in. So my mom died in 2001, and I would > have to have made a withdrawl by Dec 31, 2002. > Well, as you probably guessed, I didn't make the withdrawl, > but I'm now trying to figure out what to do about it. I'm > about to file my 2002 tax return (delayed due to late K-1 > information from my mom's estate). > Some questions: > 1. Should I just take the 2002 RMD now and report it on my > 2002 return as if I'd taken it in 2002? Are the any > penalties that would go along with this for a late > withdrawl? If so, where can I find how to compute them? > 2. Should I take the 2002 RMD in 2003 and report it on my > 2003 return? Again are there penalties? I'd also take my > 2003 RMD during 2003. > 3. Should I just start taking RMDs in 2003 and hope nobody > notices? > I want to do the right thing, but I'm having trouble finding > the info I need on handling this. > Are traditional and Roth IRAs the treated the same regarding > RMDs? 1 - As a non-spouse beneficiary of the IRA, you cannot treat it as your own. Unless you elect otherwise, you must complete withdrawals no later than the end of the fifth calendar year after the year of the decedent's death. It is not necessary to take a withdrawal every year, so you can wait until the fifth year and withdraw the entire balance before December 31, 2006. If you do so before the end of the fifth year, you can change your mind and elect to take RMD withdrawals over your life expectancy, befinning with your age in the year following the decedent's death. Pub 590 (pages 30-32) has the details of how to do this. 2 - See reply 1. The question is moot. 3 - Traditional and Roth IRAs are treated the same after the owner has died. << -------------------------------------------------> << The Charter and the Guidelines for submitting > << messages to this newsgroup are at www.asktax.org > << -------------------------------------------------> |
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10-11-2003, 06:24 AM
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| Re: Help: didn't take RMD from inherited IRAs "Eric Goodill" <nospam[at]email.com> wrote: - quote - > My mom died in 2001, and I received an inherited
Take that as a cue you need to hire someone to do it for you.> traditional IRA and an inherited Roth IRA. My mom was 72 > when she died, so she was already being forced to take > yearly required minimum distributions (RMDs) to drain her > IRAs (not sure if this applies to both traditional and Roth > IRA). My understanding is that since she was forced to take > RMDs, so am I. I further understand that the first withdrawl > must occur no later that Dec 31 of the calendar year after > the one she died in. So my mom died in 2001, and I would > have to have made a withdrawl by Dec 31, 2002. > Well, as you probably guessed, I didn't make the withdrawl, > but I'm now trying to figure out what to do about it. I'm > about to file my 2002 tax return (delayed due to late K-1 > information from my mom's estate). > Some questions: > 1. Should I just take the 2002 RMD now and report it on my > 2002 return as if I'd taken it in 2002? Are the any > penalties that would go along with this for a late > withdrawl? If so, where can I find how to compute them? > 2. Should I take the 2002 RMD in 2003 and report it on my > 2003 return? Again are there penalties? I'd also take my > 2003 RMD during 2003. > 3. Should I just start taking RMDs in 2003 and hope nobody > notices? > I want to do the right thing, but I'm having trouble finding > the info I need on handling this. - quote - > Are traditional and Roth IRAs the treated the same regarding
Whatever you take now is 2003 income, the penalty is 50%> RMDs? (yes thatıs FIFTY) of what the RMD was, and get it done ASAP. -- David M. Woods, EA Boston, MA 02109 Postings here are general information only and not to be relied upon as advice. << -------------------------------------------------> << The Charter and the Guidelines for submitting > << messages to this newsgroup are at www.asktax.org > << -------------------------------------------------> |
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#-1
10-08-2003, 08:33 PM
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| Help: didn't take RMD from inherited IRAs My mom died in 2001, and I received an inherited traditional IRA and an inherited Roth IRA. My mom was 72 when she died, so she was already being forced to take yearly required minimum distributions (RMDs) to drain her IRAs (not sure if this applies to both traditional and Roth IRA). My understanding is that since she was forced to take RMDs, so am I. I further understand that the first withdrawl must occur no later that Dec 31 of the calendar year after the one she died in. So my mom died in 2001, and I would have to have made a withdrawl by Dec 31, 2002. Well, as you probably guessed, I didn't make the withdrawl, but I'm now trying to figure out what to do about it. I'm about to file my 2002 tax return (delayed due to late K-1 information from my mom's estate). Some questions: 1. Should I just take the 2002 RMD now and report it on my 2002 return as if I'd taken it in 2002? Are the any penalties that would go along with this for a late withdrawl? If so, where can I find how to compute them? 2. Should I take the 2002 RMD in 2003 and report it on my 2003 return? Again are there penalties? I'd also take my 2003 RMD during 2003. 3. Should I just start taking RMDs in 2003 and hope nobody notices? I want to do the right thing, but I'm having trouble finding the info I need on handling this. Are traditional and Roth IRAs the treated the same regarding RMDs? Thanks for any help. -Eric << -------------------------------------------------> << The Charter and the Guidelines for submitting > << messages to this newsgroup are at www.asktax.org > << -------------------------------------------------> |
| Tags |
| inherited, iras, rmd |
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