Inherited IRA’s RMD

Submitted by Douglas Bauerband on Thu, 2024-05-30 19:56

Am I correct in assuming that:

  1. Inherited IRA’s per the new Secure Act are 10yrs to be liquidated and must take an RMD one year after date of death?
  2. Inherited IRA’s per the new Secure Act have a waiver for 2024 RMD but no ruling in 2025 to date?
  3. Inherited IRA’s prior to the Secure Act have not waiver for 2024 and can continue over 10yrs?

Thank you,

Douglas



Submitted by Alan - IRA critic on Thu, 2024-05-30 20:11

No, if the beneficiary is an EDB, they are not subject to the 10 year rule but must take annual RMDs. If the 10 rule applies the beneficiary is only required to take annual RMDs if the owner passed after their RBD. If an annual RMD is required, the deadline will be the end of the following year, not 1 year from the DOD.
Correct, but the waiver is only for 10 year rule beneficiaries, not for EDBs.
Waiver does not apply, and the existing RMD schedule should continue. The 10 year rule does not apply to IRAs inherited before 2020 until the beneficiary also passes after 2019.

Submitted by Douglas Bauerband on Wed, 2024-06-19 20:14

Wow they do not make it easy.

She (his mom) was 75 and taking her RMD’s. She passed in December of 2023. Her son inherited her IRA and we opened an inherited IRA for him and he is 55 yrs old.

he is not an EDB according to the Five categories of EDBs, correct?
his inherited IRA is considered under the 10yr rule, correct?
He is required to take an RMD this year (one year after passing) based on his age every year for 1oyrs, correct?
He must liquidate the inherited IRA on or before the 10th anniversary of him moms passing, correct?
2024 RMD is waived for him this year, correct?

Thank you very much for all your help and patience.

Douglas

 

Add new comment

Log in or register to post comments