Clarity on 10 year rule and age of majority
Let’s say a 15 year-old child inherits an ira today, and age of majority is 21. They can stretch for 6 years until age 21, then they have to follow the 10 year rule. Does the 10 years start at age 21 or once they hit 21, would they only have 4 more years to empty the account?
Thanks!!!
Permalink Submitted by Alan - IRA critic on Wed, 2021-09-15 23:37
The 10 years would start on 1/1 of the year following the year they reach 21. For the year the child reaches 21, the LE stretch still applies. Further, if the child pursues a program of secondary education, yet to be clearly defined by IRS Regs, the LE stretch can continue through the year the child ends such program, or age 26, whichever occurs sooner. Therefore, for those with max secondary education pursuits, the IRA may not have to be drained until age 36.