Are all minor beneficiaries EDBs?
If a grandchild is a minor and inherits a portion of the grandparent IRA, are they considered an eligible designated beneficiary or is that only the minor child of the IRA owner?
If not an EDB, is 10 year rule in effect if IRA owner was past RBD?
Permalink Submitted by Alan - IRA critic on Thu, 2024-12-19 13:49
Only the minor child of the deceased owner (not a grandchild) is an EDB. For the grandchild, the 10 year rule applies regardless of the age of decedent, unless they are disabled or chronically ill.
When decedent passes post RBD, there will also be annual beneficiary RMDs required in years 1-9 which would trigger kiddie tax issues if large enough.