When should I take an RMD if my IRA owner dies?

You must take an RMD for the year of the IRA owner's death if the owner had an RMD obligation that wasn't satisfied. Generally, a designated beneficiary is required to liquidate the account by the end of the 10th year following the year of death of the IRA owner (this is known as the 10-year rule).

What is the RMD due if a beneficiary dies?

For the year of the account owner's death, the RMD due is the amount the account owner was required to withdraw and did not withdraw before death, if any. Beginning the year following the owner's death, the RMD depends on certain characteristics of the designated beneficiary and the distribution option chosen by the beneficiary.

What is a required minimum distribution (RMD) in an IRA?

That withdrawal is known as a required minimum distribution (RMD). RMDs are designed to ensure that investments in IRAs don't grow tax-deferred forever and this carries over to the beneficiary of the IRA. The rules for how IRA beneficiaries must take RMDs will depend on when the account owner passed away.