Inherited IRA

Submitted by Jerome Pasichow on Thu, 2023-01-26 20:55

If someone has an Inherited IRA set up in 2009 (father passed away in 2008 and his son inherited the account), and stopped taking distributions as of 2019, Should the account be liquidated now? If so, just account for it as income in 2023 and see if the IRS asks any questions?
OR is it grandfathered in to the prior rules governing such accounts in 2009?

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Permalink Submitted by Alan - IRA critic on Thu, 2023-01-26 23:15

No need to liquidate, but the missed RMDs for 2019 and 2021-2022 should be calculated and distributed. Once done a 5329 should be filed for each late year with a request to waive the penalty. The Secure Act does not affect this.

Permalink Submitted by David Mertz on Thu, 2023-01-26 23:25

RMDs for 2020 were waived, so it’s only necessary to make up the 2019, 2021 and 2022 RMDs.

Permalink Submitted by Jerome Pasichow on Thu, 2023-01-26 23:55

Thanks very much!!