Successor Beneficiary
Original T-IRA owner dies in 2023, before her RBD
Daughter, Non-EDB, inherited
Daughter dies in 2025 leaving the inherited IRA to her son (a successor beneficiary)
My understanding is the successor beneficiary “takes on” what left of the original beneficiaries 10-year schedule.
My question is re: RMDs – does the successor beneficiary need to take RMDs during the remaining 10-year period (i.e. beginning in 2026 the year after the year of the original beneficiary’s death)?
Thank you in advance
Permalink Submitted by Alan - IRA critic on Fri, 2025-02-07 11:18
The successor does not have to take beneficiary RMDs, but must drain the account in 2033. You are correct that they are subject to the 10 year rule that applied to the designated beneficiary. But because the designated beneficiary was not subject to annual RMDs in years 1-9, neither is the successor. That also means that there is no year of death RMD to be completed.