Inherited IRA with four sisters (RMD)
4 sisters inherited Mom’s IRA of 20k
The Mom did not take her RMD for 2021, which was about $2300
1 sister transferred to an inherited IRA.
The other 3 took out lump sums.
Since the other 3 took out lump sums does that satisfy the RMD for 2021 and the 1 sister who opened an inherited IRA does not have to take an RMD for 2021 and does not have to take an RMD for the next 10yrs (must be liquidated in the 10th year), Am I correct?
Thank you.
Douglas
Permalink Submitted by Alan - IRA critic on Fri, 2021-05-28 22:13
Yes, correct. The other 3 satisfied the year of death RMD for all. The sister with the inherited IRA will have no annual RMDs, and the lump sum distribution in 2031 will probably be too small to worry about how it would affect 2031 taxes.