Estate as IRA Beneficiary
If the Estate is the beneficiary of a traditional IRA of a person who was 77 and had taken RMD’s elects to receive it as an Inherited IRA, it is my understanding that distributions continue based on the single life expectancy of the original account holder. The original account holder was using the Uniform Lifetime-Table III in Pub 590. Would the estate continue to use this table or would it need to use Table I (single life expectancy for beneficiaries)?
Permalink Submitted by Alan Spross on Fri, 2008-05-02 19:35
The estate must shift to Table I using the owner’s age as would have been reached in the year of death. The divisor is reduced by 1.0 for the following and each successive year. (Ref Pub 590, p 37).