Eligible Designated Beneficiary Question
Hello, I have a client with a double inherited IRA BDA and the question I have is if someone was less than 10 years younger than the first beneficiary (not the the original Depositor) would they qualify as an EDB?
Thank you.
Permalink Submitted by Alan - IRA critic on Mon, 2025-04-14 14:59
No. In RMD terms a “designated beneficiary” is limited to a beneficiary named by the plan owner. Therefore, a successor beneficiary (named by a beneficiary) can never be an EDB. And the age of a successor beneficiary is immaterial because a successor beneficiary can only complete the RMD schedule of the prior beneficiary with the exception being that the 10 year rule will also apply to the successor beneficiary if it did not apply to the designated beneficiary.