Eligible designated beneficiary
When a T- IRA owner dies prior to their RBD and the beneficiary is an EDB and older than the account owner (now deceased) the EDB has the option of either the 10 year rule without an annual RMD or stretch distributions
question.
In situations where the EDB chooses the stretch option whose life expectancy do they use?
Their own? or the account owner?
I thought the EDB can choose the “longer of” meaning they can use the account owner LE since he was younger than the EDB, however I am receiving this is incorrect
I am being told the EDB, regardless of age must use their own life expectancy.
Permalink Submitted by Alan - IRA critic on Fri, 2025-06-27 18:36
Because the younger owner passed prior to RBD, there is no option to use the owner’s LE. The beneficiary will have to use their own LE. If owner passed after RBD, and the beneficiary was older, the owner’s (aka ghost LE) would apply.