Permalink Submitted by Alan - IRA critic on Thu, 2024-10-10 17:38
Daughter is subject to the 10 year rule and also annual RMDs in years 1-9. If daughter took an RMD in 2022 it would be the amount mother did not complete before passing. Beneficiary RMDs for 2023 and 2024 were waived by the IRS, but they must resume in 2025. As such, daughter did not miss an RMD. The divisor is based on the age of daughter in 2023, but reduced by 1.0 for each year after 2023, therefore by 2.0 for 2025. Per the 10 year rule daughter must drain the inherited IRA by the end of 2032.
While no 2024 RMD is required, daughter might consider taking a voluntary distribution to help in reducing the large distribution in 2032.
Permalink Submitted by Alan - IRA critic on Thu, 2024-10-10 15:53
Did parent pass before or after their RBD, and in what year?
Is daughter the sole beneficiary, or if not did she create a separate inherited IRA account?
Permalink Submitted by Geoffrey Kasher on Thu, 2024-10-10 17:23
Mom took RMDs in 19, 20,21 and the daughter took in 2022
Daughter opened an inherited IRA
Permalink Submitted by Geoffrey Kasher on Thu, 2024-10-10 17:23
and daughter is sole bene
Permalink Submitted by Alan - IRA critic on Thu, 2024-10-10 17:38
Daughter is subject to the 10 year rule and also annual RMDs in years 1-9. If daughter took an RMD in 2022 it would be the amount mother did not complete before passing. Beneficiary RMDs for 2023 and 2024 were waived by the IRS, but they must resume in 2025. As such, daughter did not miss an RMD. The divisor is based on the age of daughter in 2023, but reduced by 1.0 for each year after 2023, therefore by 2.0 for 2025. Per the 10 year rule daughter must drain the inherited IRA by the end of 2032.
While no 2024 RMD is required, daughter might consider taking a voluntary distribution to help in reducing the large distribution in 2032.
Permalink Submitted by Geoffrey Kasher on Thu, 2024-10-10 18:37
You are really fantastic. I appreciate your assistance as always