No. of Recommendations: 1
My father-in-law passed away in Feb 2025. Prior to his death he had taken half of his 2025 RMD from his IRA.
Later in 2025 his IRA was rolled over (in its entirety) into my mother-in-law's Rollover IRA. We have recently discovered that the remaining 2025 RMD withdrawals were never taken. And now, of course, the balance is zero.
Is there a way to correct this via my mother-in-law's IRA?
No. of Recommendations: 3
I literally copied and pasted into an AI search and got this:
AI Overview
Yes, the missed 2025 RMD can be corrected. The surviving spouse (mother-in-law) should take the remaining RMD amount from her own IRA, as the IRA was rolled over to her. To avoid the 25% penalty, file IRS Form 5329 with her 2025 tax return to request a waiver for "reasonable error".
IRS (.gov)
IRS (.gov)
+4
Correction Method: Because your mother-in-law rolled the account over to her own IRA, she can take the remaining 2025 RMD amount from that new account, according to IRS rules.
The Penalty: The penalty for missed RMDs is 25%, which can be reduced to 10% if corrected in a timely manner (usually within two years).
Waiver: Because the shortfall was due to the confusion surrounding his death, you can ask for a penalty waiver by filing IRS Form 5329 with a reasonable cause explanation.
IRS (.gov)
IRS (.gov)
Clearly doesn't copy and paste well from AI to here, but try it yourself and it gives step by step answers. It being AI, consider it a starting point for where to search for answers, rather than gospel, but I have found AI does OK with rule based things like taxes, and you can fine tune the answers with further detailed queries.
IP
