Separate accounts rule
4 IRA beneficiaries and only 2 created separate accounts by 12/31 of the year after death. For the separate accounts rule to apply, do all the beneficiaries have to have separate accounts by the deadline or can the 2 beneficiaries with the separate accounts take distributions based on their own lives during the 10 year period (post RBD death)?
Permalink Submitted by Alan - IRA critic on Wed, 2024-10-16 11:30
This was always a question, but the new Secure Act Regs have removed any reference to a requirement that ALL beneficiaries must have created separate accounts by the deadline. Therefore, in this case the 2 beneficiaries that did establish separate accounts by the deadline (end of year following the year of death) can use their own ages to calculate beneficiary RMDs.
The other two that did not establish separate accounts must use the shortest LE of the two for their RMDs.