Post Secure Act RMD
Hello,
I have a client who’s mother passed away this year (she was 90) and the daughter inherited the the mother’s IRA. The mother satisficed her RMD in 2024. The daughter would like an idea what her RMD will be in 2025 under the 10 year rule. Would I use the daughter’s single life expectancy in 2025 or would the factor be 10 since it’s the first year of the 10 year plan?
Thank you.
Permalink Submitted by Alan - IRA critic on Wed, 2024-09-18 12:25
Daughter’s 2025 RMD divisor will be based on her attained age in 2025 and will generate a lower annual RMD than if daughter wanted to voluntarily use the 1/10, 1/9, etc method to generate a roughly equal distribution each year and avoid a large total distribution in 2034. If daughter only takes out the RMD in years 1-9, that will leave a much larger taxable distribution in 2034.