Non-Spouse Inherited IRA’s before 2020 Secure Act.
In reading the CARES ACT regarding 2020 RMD waivers it is hard to distinguish if it apply’s to Beneficiaries of Inherited IRA’s before the Secure Act ( 10 year rule) took effect. Are those of us that Inherited non-spouse IRA’s before 2020 included and allowed to waiver our required RMD for 2020? Thank-you
Permalink Submitted by Alan - IRA critic on Mon, 2020-04-06 18:37
Yes, if you are the original beneficiary taking annual RMDs, the 2020 inherited account RMD is waived. When RMDs resume in 2021 you would use the 12/31/2020 balance and a divisor 1.0 less than what you would have used in 2020. If you are under the 5 year rule then 2020 is not counted, and your 5 year rule ends one year later than it would have.