Single person 76 yrs old in 2021 has several IRA’ s she contributed to valued at about $300,000 total as of 12/31/20
She inherited 2 IRA’s in 2016 from a friend that were valued at $ 250,000 total as of 12/31/20.
What will be the factor to use in 2021 to take RMD for the IRA’s from her friend?
Does that factor for the inherited IRA’s diminishes by 1.0 every year?
Am I correct that for year 2021 the single person’ RMD is $26, 086.96 from her IRAscomputed as $300,000 divided by 11.5 Also for year 2021 the single person RMD is $ 18,939.39 from the inherited IRAs from her friendcomputed as $ 250,000.00 divided by 13.2. There were no other beneficiaries from this inherited IRA
No. The owned IRA divisor for 2021 is 22.0 . 300,000/22 = 13,636.36. The Uniform Table applies.
The inherited IRA RMD divisor is 11.5. 250,000/11.5 = 21,739.13. The single life Table applies.
Adjustment to the new RMD tables does not start until 2022.
Permalink Submitted by Alan - IRA critic on Wed, 2021-08-04 23:36
Single person was 72 in 2017 so her initial divisor was 15.5 for 2017 beneficiary RMDs. Subtract 1.0 each year including the no RMD year of 2020, so 11.5 for 2021. However, since there are new RMD tables being introduced in 2022, she will have to reconstruct the divisors to what they would have been under the new tables.
Under the 2022 tables the 2017 divisor would have been 17.2 instead of 15.5. Subtracting 5.0 for 5 years since 2017 would produce a 2022 beneficiary divisor of 12.2. Continue 1.0 annual reduction after that.
The above divisors assume that if there was multiple inherited IRA beneficiaries, that she established her own separate inherited IRA account no later than 12/31/2017, enabling use of her own age for RMDs.
Of course, her inherited IRA divisors and owned IRA divisors will always be different and must be applied to the correct accounts each year.