Inherited IRA RMD

Submitted by Dean Strom on Thu, 2023-07-20 20:57

I think I know the answer to these questions, but I’d feel better if I had confirmation…

Son inherits Trad. IRA from his 80-year-old mother…in June 2022. RMDs had been taken in 2022 before IRA owners (moms) death.

Son gets an RMD waiver in 2023?

Account must be liquidated by end of 2032?

Is required to take an annual RMD, starting in 2024?

And when he does start taking RMD in 2024, there is a formula that includes mothers birthdate/death date/sons birthdate and year-end account value?

Thanks in advance for helping me out.



Submitted by Alan - IRA critic on Thu, 2023-07-20 22:01

Yes, son is not required to take a life expectancy RMD in 2023, but will have to take one in 2024 unless the IRS waives that RMD again at some point in 2024. However, son may wish to take voluntary distributions each year to avoid a large taxable distribution in 2032. The 2024 beneficiary RMD would be calculated from Table I with a divisor of 1.0 less than the single life table divisor for the son’s age in 2023 and the 12/31/2023 balance.

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