beneficiary to beneficiary IRA rmd calculation
Hello,
if some one has beneficiary IRA and they are deceased then assets coud go to their beneficiary may be son or daughter or whom ever it is.
calculation of the RMD for the beneficiary to the beneficiary is it the same as the original beneficiary or does the son or daughter use their own age to calculate the new bene RMD or not?
Permalink Submitted by Alan Spross on Thu, 2011-03-10 20:15
The successor non spouse beneficiary must continue the same RMD schedule as the original designated beneficiary. They do not get a new stretch so their own age does not matter.
Also note that if the successor beneficiary is the spouse of the original beneficiary, they CANNOT assume ownership of the inherited IRA and it must continue in beneficiary format.
Therefore, if a grandchild were to inherit an IRA directly, their RMD would be very small to start. But if the grandchild were a successor beneficiary to their parent’s inherited IRA, they would have to continue their parent’s relatively high RMD.