Successor Beneficiary of an Inherited IRA
Hello,
I am trying to find an answer to this scenario. Our client inherited an IRA from her father in 2005. He was 79 when he died and she was 52. She was able to use the stretch provision since it was Pre-Secure Act. Now at the age of 68 she has passed away and named her spouse as her primary beneficiary. Since the spouse is a successor beneficiary of an inherited IRA should he have to follow the 10 -year rule to disperse the funds or does he have another option?
Permalink Submitted by Alan - IRA critic on Mon, 2021-11-29 21:59
The owner passed pre Secure, but the beneficiary passed subject to the Secure Act rules. Client’s spouse cannot treat the IRA as inherited from his spouse or do a spousal rollover because client was a successor beneficiary. Client’s spouse is subject to the 10 year rule with no annual RMDs, but the inherited IRA must be drained by 12/31/2031 if client passed in 2021.