RMD of an Inherited Inherited IRA

Submitted by Ryan Smith on Thu, 2023-04-20 17:13

IRA owner died on 06/10/2020 at the age of 63.
His father inherited the IRA but passed away on 10/19/22 at the age of 89.
The beneficiaries daughter, age 64, has now inherited the Inherited IRA.

How is the RMD calculated for 2023? Would it be based off the original beneficiaries age?



Submitted by Alan - IRA critic on Thu, 2023-04-20 18:32

Father was an EDB taking LE RMDs. The daughter will be subject to the 10 year rule, but because the IRA owner passed prior to RBD, the daughter will not have to take annual RMDs in years 1-9, but she will have to complete father’s 2022 RMD if father did not. 

Submitted by Ryan Smith on Thu, 2023-04-20 19:21

Did the 10 year period reset when the daughter inherited the IRA?

Submitted by Alan - IRA critic on Thu, 2023-04-20 22:37

Father was an EDB being older than IRA owner, so the 10 year rule did not apply to him unless he specifically opted into it, which is highly unlikely. Daughter however, is subject to the 10 year rule upon the death of father.

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