Beneficiary IRA IRS relief
My question is regarding the IRS relief from RMD’s for inherited IRAs for 2021-2024.
Does the relief extend to Eligible Designated Beneficiaries who want to use the “stretch” option? For example, if I am an EDB who inherited an IRA in 2021, was I excused from taking RMDs in 2022 and 2023, or did I miss RMDs and am I now subject to penalties?
Permalink Submitted by Alan - IRA critic on Fri, 2024-09-20 13:27
There was no relief for EDBs unless they opted into the 10 year rule, which can only be done if the owner passed prior to RBD. But you can make up the missed RMDs and continue stretch payments. You would have to file a 2022 and 2023 5329 to request the penalty waiver for reasonable cause.