Secure ACT
The situation is a sibling deceased at the age of 87 and named a sibling as beneficiary. They are age 83. I know there is an exception to the 10 year payout rule that if they are within 10 years of each other, than you can use the life factor/stretch provisions. But what if the LE factor/stretch method is less favorable than the 10 year option, can the beneficiary elect to use what ever method is more favorable?
Thanks
Permalink Submitted by Alan - IRA critic on Fri, 2020-12-04 19:14
The Secure Act does not provide the 10 year rule as an option to LE RMDs. However, if the beneficiary was older than the decedent by more than a year and the decedent passed after their RBD, the IRS might extend the “at least as fast as” rule to allow the beneficiary to use the remaining LE of the decedent for RMDs instead of the age of the beneficiary. This needs to be clarified by the IRS.