Inherited IRA RMD
I have a client that has an Inherited IRA. The original owner was his brother. His brother passed away prior to age 70 1/2. My client is under age 70 1/2. His brother was taking regular but not required distributions from the account. My question is….does my client use his own life expectancy or his brother’s when calculating the RMD?
Permalink Submitted by mk foss on Thu, 2012-01-05 18:16
As long as the IRA was not annuitized by the owner before his death, the brother-beneficiary uses his own life expectancy. RMDs must begin the year after the death of the original owner based on the beneficiary’s life that year. Subsequent RMDs are calculated by reducing the factor determined in the year after the death by 1.0 for each ensuing year.