Pre-Secure Act RMD Question
Hello,
I have the following scenario that I would like to get some feedback on:
A client passed away in 2016 ac the the age of 50 and split the funds between his 2 benes who were his Mother (80) and Father(85) in 2016.
The Father passed away on December 27, 2019 and his share of the funds were moved to his wife’s account. The Mother has now passed away on 7/22/2024. For the 2024 RMD calculation wouldn’t be based on the Mother’s life expectancy factor in 2017 (81 10,5 LE Factor) and reduced by one every year after so in 2024 it would be 3.5 LE factor?
Any feedback would be greatly appreciated. Thank you.
Permalink Submitted by Alan - IRA critic on Thu, 2024-08-08 13:49
You are correct. The 2024 divisor is 3.5, therefore this inherited IRA will be drained long before the 10 year rule deadline in 2034. The successor beneficiary just continues mother’s RMD schedule.