Do RMDs Have to Be Paid for a Deceased Participant?

Some questions seem so obvious that one wonders why they are even asked. And the answers may be obvious—but in different ways for different people.

One such question is raised in a post on DWC’s blog. Some might be surprised by the answer.
Suppose an employee passes away at age 73. He had been taking his required minimum distributions (RMDs) after he attained age 70½. When he died, he was not married, had no children and had not designated a beneficiary.

So what happens with his RMDs? Do they still have to be paid?

“The short answer,” says DWC, “is a resounding ‘yes.’” The RMDs still must be paid for each year the participant—even though deceased—has a balance in the plan. But, says DWC, “that’s the easy part.” Two questions follow in the wake of that “yes”: How is the RMD calculated? And where should the RMD be sent? The post, “Do We Need to Continue Paying RMDs for a Deceased Participant?”, answers those questions and provides some helpful guidance.

“The bottom line is that once a participant has begun taking RMDs, he or she must continue to do so—even after death, and even if the participant has nobody to whom you can distribute the funds,” says

DWC. “Keep in mind,” they write, that the IRS collects the taxes on the money that has been sitting in a tax-deferred retirement plan. “That does not cease when the participant passes away,” they remind, adding, “Death and taxes, your only guarantees in life.”