bene to non spousal bene pymts
How does payments/options work for a beneficiary to a non spousal beneficiary. here is the scenario father died and sister inherited the IRA into a non spousal bene IRA. so now sister died and bene to sister is inheriting the assets from the nonspousal bene IRA. in what length of time must the new bene take the money out. don’t they just take over the payments without any new calculations ?
Permalink Submitted by mk foss on Thu, 2009-02-12 21:13
They take the payments over the sister’s remaining life expectancy from the single life table. That figure was calculated based upon the sister’s life in the year after the original owner died and then reduced by 1 for each subsequent year.
The only new part about the calcualtion is that the FMV on 12/31 changes each year.