Herb Montgomery
My client inherited an IRA (non-spousal) in 2019. Unfortunately she passed away this year, her husband is the sole beneficiary. He also inherited an IRA (non-spousal) in 2019, can he combine hers with his and continue to take the RMD based on his life expectancy?
Permalink Submitted by Alan - IRA critic on Mon, 2024-07-29 13:24
No, they cannot be combined.
His prior inherited IRA continues to be subject only to LE RMDs, while he is a successor beneficiary on the IRA inherited from his wife and that IRA is now subject to the 10 year rule. In addition, in years 1-9 he must continue the RMD schedule his wife was using in years 1-9 which means reducing her divisor by 1.0 each year. The age of a successor beneficiary is irrelevant to their RMD requirements.
He must also complete her 2024 RMD if she did not do so.
While it’s not clear whether these 2019 deaths were of the same original IRA owner, even if the original owner was the same, the RMD requirements are different now that one of them is subject to the 10 year rule.
NOTE: The RMD divisors for both inherited IRAs should have been reset to reflect the new RMD tables effective in 2022. This would have slightly reduced the RMDs by increasing the divisor.
Permalink Submitted by herb-tmfgi-com on Wed, 2024-07-31 15:54
Thank you Alan.