Inheriting an Inherited IRA
I have a client 57 yr old who is the sole beneficiary on his mother’s iherited IRA. Mother was taking RMDs based on her sister’s life expectancy (original IRA owner and 10 years older). Are his RMD’s based on his own life expectancy or the life expectancy mother was using?
Permalink Submitted by Alan - IRA critic on Fri, 2017-05-26 19:15
Client’s successor beneficiary RMDs must continue the schedule of RMDs his mother was using. However, if his mother was using the wrong divisors the client can adjust his divisors based on what would have been correct for his mother. Why was his mother using her sister’s life expectancy if the sister was older? She would only use sister’s life expectancy if her sister was younger than her and passed after her RBD.
Permalink Submitted by Kevin Dempsey on Mon, 2017-05-29 12:14
Thanks for the reply. Not sure why the mother was taking RMDs based on her sister life expectancy. Account was with another advisor. According to the son, the RMD amounts seem to be way off too. Not sure the son has all the facts right. Hopefully speaking with the advisor this week to clear things up. Thanks again!