RMD from an Inherited IRA in year the successor owner dies
Could you please help me with this scenario?
Irene (age 68) owns a TIRA and dies in 2000. Her son Lou inherits the TIRA and begins taking RMDs in 2001. Lou dies in 2022 at age 63. The TIRA’s beneficiary is his ex-wife (age 62). Does a RMD need to occur in 2022? Does this inherited TIRA now follow the new 10 years rule?
Permalink Submitted by Alan - IRA critic on Tue, 2022-11-29 22:38
His ex wife must complete Lou’s 2022 beneficiary RMD if he did not do so, but otherwise will not be subject to annual RMDs, just the 10 year rule. Ex wife must drain the inherited IRA by the end of 2032, and to avoid a large taxable distribution in the final year might consider taking voluntary annual distributions to avoid that.