Beneficiary IRA

Submitted by Craig LeBouef on Thu, 2023-04-27 13:40

Daughter inherited 401k directly from father in 2022 and transferred to a beneficiary IRA in January 2023. Father took RMD in year 2022 before passing. Daughter has to begin 10-year payout of IRA in year 2023. Does she use single life expectancy table for 2023? If she is age 50 in 2023 then does she use factor 36.2 in 2023 and so forth from table and whatever is remaining in year 10 she takes all out?



Submitted by Alan - IRA critic on Thu, 2023-04-27 14:57

  • Yes, that is correct. Her 2023 divisor is 36.2, 35.2 in 2024, etc. The account must be drained in 2032. 
  • Not knowing father’s DOB, it is possible that he took an RMD in 2022 but still passed prior to his RBD. If that were to be the case, daughter would not have to take annual beneficiary RMDs per the proposed Secure Act Regs. 
  • She may also want to take out more than the RMD anyway, since the annual RMDs will still leave a much larger distribution for 2032 which might increase her marginal rate that year. 

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