Successor beneficiary
Our client, Cindy who inherited her mom’s IRA back in March 2024. Cindy inherited an IRA and a Roth, both on the 10yr rule. Cindy has since passed and left her Inh IRA and Inh Roth to her spouse, Mike.
My question is, does Mike continue to follow Cindy’s 10yr schedule or can he treat these funds has his own and move them into his own IRA and Roth?
Permalink Submitted by Alan - IRA critic on Tue, 2025-07-22 13:15
Yes, Mike must continue the RMD schedule Cindy was using.
On the inherited Roth IRA, Cindy was not subject to annual RMDs, just the 10 year rule ending in 2034. Mike will also not need to take annual RMDs but must also drain the inherited Roth in 2034. He might want to let the account grow tax free until then.
For the IRA, if Mom passed after her RBD, annual beneficiary RMDs are required using Cindy’s schedule in years 1-9 and the account must also be drained in 2034. If Mom passed prior to RBD, there are no annual RMDs, just the 10 year rule, so same as the Roth IRA.
Note that because Mom passed after the Secure Act, the 10 year rule applied at that time, and Mike does not get an additional 10 years, just the same 10 year period that Cindy was subject to.