IRA BDA Question
Hello,
Hello, an adviser called in regarding an IRA BDA account that was inherited in 2018 for Tom Shea. The account holder has passed away and the soul beneficiary wants to disclaim the assets. Since the assets now need to move to an estate owned IRA BDA for Tom Shea, how will the RMD be calculated?
Is it the same RMD payments that they would have followed when it was a BDA for Tom?
Any help would be greatly appreciated. Thank you.
Permalink Submitted by Alan - IRA critic on Wed, 2020-11-18 20:10
No. Since Tom was an eligible designated beneficiary who passed after the Secure Act went into effect, the successor beneficiary (his estate) will be subject to the 10 year rule. The beneficiaries of his estate will probably want to have the inherited IRA assigned by the executor to separate inherited IRA for those beneficiaries so the estate can close. Those beneficiaries of Tom’s estate will then be subject to the 10 year rule with no annual RMDs, but the inherited IRAs must be drained by 12/31/2030.