Inherited IRA, second time
Client died after RBD, left IRA to son. Son established new Inherited IRA and added beneficiaries on account. Son is taking RMDs. Son just dies.
2 questions: Can bene’s inherit an inherited IRA? The bene’s are siblings.
Second question, if the siblings can inherit the inherited IRA, do they have a new 10 year limit or are they using the original 10 year limit?
Thanks.
Permalink Submitted by Alan - IRA critic on Thu, 2025-08-28 13:04
Yes, these beneficiaries are successor beneficiaries. They must complete in any combination the remainder of son’s 2025 RMD if he did not complete it before passing. The successor beneficiaries can and should also name their own beneficiaries. There is no limit on how many times an IRA can be inherited.
If the original owner passed after 2019 as your question suggests, unless the son was an EDB the son was subject to the 10 year rule and the successor beneficiaries get no additional time and the original 10 year deadline remains. In addition, the successor beneficiaries must continue to take annual RMDs using the same divisor that son would have used had he lived. Successor beneficiary ages are irrelevant.
But if the original owner passed prior to 2020 or son was not subject to the 10 year rule, the successor beneficiaries will be subject to a 10 year rule that ends in 2035.