Successor Beneficiaries who are Minors and the Secure Act

Submitted by Craig Gillen on Wed, 2020-09-23 18:26

Hello,
I am trying to understand the rules for minor beneficiaries under the secure act, particularly if they are successor beneficiaries of an inherited IRA.

Let’s say for example that I inherit an IRA and then pass away 5 years later, having named my minor children as beneficiaries of the IRA-BDA. Do my kids get a fresh 10 year clock at when they reach the age of majority?

Thanks in advance.



Submitted by Alan - IRA critic on Wed, 2020-09-23 20:47

  • If you inherit an IRA from a non spouse after 2019 and you are not an eligible designated beneficiary, you are subject to the 10 year rule, and your successor beneficiary can only complete your 10 years. 
  • If you are an eligible designated beneficiary (EDB), perhaps because you are less than 10 years younger than the owner but not the surviving spouse, upon your death the minor children get a new 10 year rule period.
  • Minor children are only treated as EDBs if they are the designated beneficiary of the IRA owner.

Submitted by Craig Gillen on Thu, 2020-09-24 14:33

Dear Alan, Thanks for the reply. Just to clarify; in your last statement you say that minors are only EDBs if they are the designated beneficiary of the IRA owner.  Does that mean only the original IRA owner, or could they be the designated beneficiary of the inherited IRA owner (in this case the inherited IRA owner is a non-EDB subject to the 10 year rule).Thanks again.

Submitted by Alan - IRA critic on Thu, 2020-09-24 15:18

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