I am having trouble getting a definitive opinion for a friend's (I am not a tax expert) situation regarding an inherited qualified plan (a qualified defined benefit pension plan).
The deceased was born in February, 1949 and died in November, 2022. He was 73 at the time of his death and did not take an RMD. However it is not clear if his decision not to take an RMD before his death was legally compliant. His two children inherited the funds from this qualified pension plan, but only received the funds late in 2023 after a considerable delay from the pension plan through no fault of their own.
The deceased was born in February, 1949 and died in November, 2022. He was 73 at the time of his death and did not take an RMD. However it is not clear if his decision not to take an RMD before his death was legally compliant. His two children inherited the funds from this qualified pension plan, but only received the funds late in 2023 after a considerable delay from the pension plan through no fault of their own.
- Are the two children subject to the ten-year rule that requires all funds to be removed from the plan within ten years of his death? If so, what is that date? Is it ten years after the date of his death, or another date?
- Are the two children required to take RMDs at all?
- If the answer to question 2 is yes, were/are they mandated to take RMDs in 2022 and 2023?
- If the answer to question 2 is yes, what are the correct tables that are needed to calculate the RMDs for all future years?