Bene IRA RMDs
Client inherited an IRA from parent. Parent was beyond RMD age. Date of death was 2021. Client did not take RMDs during first few years while they were waived. Now that they are mandatory, how do we determine the RMD amount needed for 2025?
Permalink Submitted by Alan - IRA critic on Wed, 2025-03-19 16:00
Client should determine his 2022 divisor based on his age in 2022. Subtract 1.0 from that divisor for each year since 2022 and the 2025 divisor will be 3.0 less than the 2022 divisor. Inherited IRA must still be drained in 2031, but to avoid a large distribution in 2031, perhaps client should withdraw more than the annual RMD. This is particularly beneficial if the balance is substantial.