IRA BDA Question
Hello,
I have the following scenario: Client is a non-spouse IRA BDA owner who is 58 in 2025. The owner of the IRA was 53 when they passed away in 2024. What options who the IRA BDA owner have? I thought the IRA BDA owner would be able to take L:ife expectancy payments, 10 year rule, lump sum or disclaim the assets.
Could you provide any insight on what methods the IRA BDA would have? Thank you.
Permalink Submitted by Alan - IRA critic on Mon, 2025-03-17 12:22
Client is an EDB who can stretch RMDs over their single life expectancy. This is usually the best option.
Or they could opt out of EDB treatment and into the 10 year rule. There would be no annual RMDs but the account must be drained in 2034. Deadline to make this election is 12/31/2025.
Of course, optional distributions in excess of any RMDs, or a total distribution is available anytime. Disclaimer deadline is 9 months after DOD.