Inherited IRA question
Looking for some clarification on a situation I am working with.
IRA owner, age 78 passes away leaving an IRA equally to his 4 children.
The 4 children each roll their share into Inherited/Beneficiary IRAs and begin taking distributions based on their life expectancy.
One of the Beneficiary IRA owners passes away leaving the account to her 2 children.
What distributions do the children have to take? They are the Beneficiaries of a Beneficiary IRA. Do they continue to take distributions based on Mom’s age? Do they take distributions based on their age?
Thanks!
Permalink Submitted by Edward Czapor on Thu, 2007-12-20 19:23
They must continue the life expectancy of the original beneficiary (mom). They cannot base RMD’s on their own lives. Mom’s remaining unused life would also be used by any successor beneficiaries of the children, and so on until the account is drained.