Inherited IRA
I have a question about an inherited IRA that occurred before and after SECURE ACT.
Original IRA holder dies in 2016 at age 65. The brother inherits the IRA at age 60 and begins stretch RMD based on his single life expectancy factor.
The brother gets married in 2019. The brother dies in 2021 at age 65 with the wife named as beneficiary. What is the wife’s RMD? Does she just continue with the RMD set by the brother? Anything in the SECURE Act that applies to this secondary inheritance by the spouse?
Permalink Submitted by Alan - IRA critic on Thu, 2021-12-09 15:48
Yes, the Secure Act states that if a beneficiary passes after 2019, the 10 year rule will apply. So in this case, brother’s wife will first have to complete brother’s 2021 RMD if he did not complete it, but the 10 year rule kicks in from then on eliminating annual RMDs, but the twice inherited IRA must be drained by 12/31/2031. Prior to Secure the wife would have had to complete the brother’s RMD schedule.