ProTracker Advantage User Manual
×
Menu

RMD Decedent - Final Distribution

 
If an RMD Client dies and has not completely taken the full RMD amount for the year of death, a final withdrawal of the decedent's RMD account must be taken by the beneficiary. The minute the IRA owner dies, the balance in the IRA belongs to the beneficiary, not the estate.
 
The beneficiary has to pay the income tax on the year-of-death RMD received by the beneficiary. The distribution will be reported on a Form 1099-R , which flows to the beneficiary's personal income tax return (Form 1040). The final RMD distribution does not go on Form 1041 (the estate's income tax return).
 
A separate Form 1099-R will be issued by the custodian to the decedent's address of record for the RMD amount received by the decedent prior to the date of death. That amount has to be reported on the decedent's final income tax return.
 
When the full amount has been taken, go to the Client Profile. Click on Accounts > RMD.
 
Assuming ProTracker Advantage is up-to-date with Withdrawal entries, note the RMD To Go amount for the decedent's year of death.
 
Distribute this remaining RMD To Go amount to one or more beneficiaries whom the decedent designated.
 
Click on Accounts > Withdrawals. In the Assistant panel, click on Add a Withdrawal.
 
Enter the final RMD withdrawal(s) and be sure to check the checkbox Count this Withdrawal toward RMD? 
 
Annotate the Comments field with a short note that describes the final distribution settlement, e.g., to whom it was paid, how the distribution was made, etc.
 
Click on Save and Close.
 
Click on Accounts > RMD. Verify that the RMD To Go amount for the decedent's year of death is now zero.
 
H944