Successor Beneficiary
T-Ira owner, died pre-SECURE, before their RBD
Original (initial) beneficiary was stretching distributions
Successor beneficiary inherits IRA post-SECURE (in 2022).
There is so much conflicting information out there re: successor beneficiary. All assistance is much appreciated.
I am thinking —> the successor beneficiary continues the stretch based on the original beneficiaries remaining life expectancy (years 1-9) and the in year 10 the RMD is the amounting remaining?
Thank you in advance
Permalink Submitted by Alan - IRA critic on Fri, 2023-01-20 15:13
You are correct if the original owner passed after their RBD, but the proposed Secure Act Regs appear to allow the annual RMDs to stop if original owner passed pre RBD even though they would have had to continue pre Secure Act. It might be safer to continue the annual distribution schedule of the first (designated) beneficiary in all cases until this is totally clarified, and also will help to spread the tax impact over all 10 years.