Stretch IRA
My client’s brother passed this year at age 63. My client was 65. My client inherited his brother’s IRA. Is it now a stretch IRA because he is older than but not 10 years younger than his brother?
My client’s brother passed this year at age 63. My client was 65. My client inherited his brother’s IRA. Is it now a stretch IRA because he is older than but not 10 years younger than his brother?
Permalink Submitted by Alan - IRA critic on Mon, 2022-10-24 23:52
Yes, your client is an EDB and can therefore stretch the inherited IRA over his remaining life expectancy. His initial divisor is determined using his attained age in 2023, and that divisor is then reduced by 1.0 for each successive year. For client, this is the same result as prior to the Secure Act. Note that he cannot use his brother’s younger age because brother passed prior to his RBD.
Permalink Submitted by John Harrington on Tue, 2022-10-25 17:43
Alan,Thanks for your quick response. Several of my fellow Cambridge advisors agree with you as does one of Lincoln’s tax expert.John