Originally Posted by sswells
Father passed away 2014.. I received 20% of assets. He had 5 annuities. All were cashed out fully. As for RMD's, father didn't have any prior to passing in 2014. With me cashing out my 20%, how do I answer the RMD question?
Any help -- thank you...
Beneficiaries aren't the only ones who need to take RMDs. Those who reach the age of 70 1/2 and own traditional, SIMPLE or SEP IRAs must take them as well. If your father passed away after the age of 70 1/2 and left you one of these accounts, make sure he took his annual RMD. But since he did not, you must withdraw the amount on or before Dec. 31 the year he dies. If you do not, the IRS charges a whopping 50 percent penalty on the amount of the RMD. The agency has this rule to prevent people from leaving money in IRAs longer than they are allowed.