Inherited IRA Traditional
If someone inherited an IRA in 2021 but did not take any distributions yet, would they use the divisor for 2025 and not calculate anything for earlier years? This would just require emptying the account in 2031 with more taxable amounts in fewer years to stretch over, correct?
Permalink Submitted by Alan - IRA critic on Mon, 2025-10-06 15:00
If the beneficiary was not an EDB and therefore subject to the 10 year rule, beneficiary RMDs were waived by the IRS from 2021-2024. The 2025 divisor would be the 2022 divisor reduced by 3.0 (1.0 for each year). You are correct that if no distributions have yet been taken, the remaining distributions will be higher and spread over fewer years (7). Taking out only the RMD for the next 6 years will probably leave a high taxable amount in 2031, so the beneficiary might want to take out more than the annual RMD until then.