Secure Act and 10-year payout – inherited IRA by daughter
Daughter inherited IRA from deceased mother in 2016 (pre Secure Act). Mother was age 56 and had not reached her RBD for IRA (divorced at DOD). Daughter was age 33. My understanding is because daughter inherited IRA before 2020 she is considered an eligible designated beneficiary (EDB) and is grandfathered under the pre-2020 stretch IRA rules.
Is that correct? Therefore, the 10-year payout does not apply to the IRA.
Permalink Submitted by Alan - IRA critic on Wed, 2022-10-05 21:59
That is correct. She can continue life expectancy RMDs as before, but should reset her divisor because the RMD tables changed for 2022 and beyond. RMDs are slightly reduced due to the adoption of these new tables.