Inheriting an IRA Pre-Secure Act
Hello,
We are working with a new client who inherited an inherited IRA in 2019. The original owner of the IRA year of birth was 1925, and he passed away in 2011, when he was already taking RMDs.
His son, born in 1955, inherited the IRA and was taking RMD based on his life expectancy and passed away in 2019.
Now, we are working with the daughter, who inherited the inherited IRA from her father, who passed away in 2019.
When we calculate the RMDs are we using the original owner’s information or the 1st Beneficiary, the son born in 1955 to calculate the RMD?
Thank you,
David
Permalink Submitted by Alan - IRA critic on Wed, 2023-10-04 14:46
The successor beneficiary daughter must continue the RMD schedule of her father with a 1.0 divisor reduction each year, with an adjustment in 2022 to the new RMD tables. The Secure Act does not affect this situation.