Inherited IRA RMD
Looking for an opinion on an inherited IRA RMDs prior to SAFE act. Original client was taking RMDs and passed leaving the assets in a pass through trust for three children. Each child establishes an inherited IRA with a tax idea number. The oldest sibling has since passed. Do you still take the RMDs based on the deceased sibling or does it change to the oldest living sibling?
Thank you.
Permalink Submitted by Alan - IRA critic on Thu, 2021-11-04 16:06
Sounds like the inherited IRA was distributed out of the trust by the trustee, and each trust beneficiary now has their own inherited IRA under their SSN. The living beneficiaries must continue the same RMD schedule as they have been on, based on the age of the oldest trust beneficiary. The successor beneficiary for the deceased child will now be subject to the 10 year rule.