Estate Inherited IRA
Sally Smith died leaving her 3 children equal beneficiaries of her IRA. Each child wants to disclaim the IRA and put the money into an Estate Inherited IRA. Will the Estate Inherited IRA be required to take minimum distributions and if yes, how are they calculated?
Permalink Submitted by Alan - IRA critic on Fri, 2017-10-20 21:07
Why do they all want to disclaim? If they do, and Sally’s estate inherits the IRA the 5 year rule will apply if Sally passed prior to her RBD. If she passed on or after her RBD, then RMDs would be calculated using Sally’s remaining life expectancy. Note that a qualified disclaimer cannot result in a non spouse beneficiary that disclaims inheriting through the estate.