When a spouse dies, checking whether they took their required minimum distribution probably isn’t anywhere near the top of the family’s immediate to-do list. Unfortunately, the tax rules don’t disappear just because the retirement-account owner died before making the withdrawal. If an IRA owner dies after RMDs were required to begin and hasn’t completed that year’s distribution, the IRS says the beneficiary is responsible for figuring out and distributing the remaining amount. That makes a year-of-death RMD one of those easily overlooked financial details that can surface months after a family thought the retirement accounts had been handled.
So, who has to handle the RMD if your spouse dies? Here’s what you need to know.
