Secure Act BDA Question
Hello,
I have a client who passed away in 2020 and she was 90 years old. One of the beneficiaries was her daughter who passed away in 2019 and elected to have per stirpes on her beneficiary options. There are 3 sons who will be receiving the daughters portion of the IRA. What rules will the 3 sons have as options once the IRA BDA accounts are funded? They have 10 years to deplete the accounts. They would just be considered Designated Beneficiary and not an Eligible Designated Beneficiary? Right.
Any insight on what options they would have would be greatly appreciated. Thank you.
Permalink Submitted by Alan - IRA critic on Thu, 2021-10-21 19:51
The sons would not be EDBs unless disabled or chronically ill at client’s DOD. Otherwise, they are subject to the 10 year rule will no annual RMDs required, but the inherited IRAs must be drained by 12/31/2030.