Non Spouse Inherited IRA
Non spouse beneficiary inherits IRA from deceased parent who was already taking RMD’S. Initial rules were that the account had to be emptied in 10 years. Much confusion now ( on my part ) whether beneficiary must take RMD’s each year. Is this actually the law? Or is it just a “proposal” being discussed? And if it’s the law, what lifetime table is being used, and where can one find this? Grr!!
Permalink Submitted by Alan - IRA critic on Thu, 2022-03-24 21:12
RMDs within the 10 year rule are part of the IRS Proposed Secure Act Regs. The Regs will likely not be adopted with or without changes until late this year. Until then, the law does not require these annual RMDs, and it is not clear whether they will be required for 2022 with a late year approval. If required, the single life table (new 2022 version) will apply with a 1.0 reduction each year as before. In fact, the annual RMD is what it would have been had the beneficiary been an EDB (eligible designated beneficiary). More complex requirements apply if the beneficiary is older than the decedent. New tables below:
Federal Register :: Updated Life Expectancy and Distribution Period Tables Used for Purposes of Determining Minimum Required Distributions