10 Year Rule
I was having a discussion about the 10 year rule this past weekend and want to know if I am missing something. My understanding is that for designated beneficaries for inherited, they are only required to take RMD’s in years 1-9 if the original IRA owner reached the required beginning date. If they hadn’t reached the RBD, the beneficiary can wait until year 10 to empty the account.
Also, for a inherited roth IRA, there are no RMD’s in years 1-9 because there is no required beginnig date for roths.
Has something chagned that I am not aware of?
Permalink Submitted by David Mertz on Wed, 2023-10-25 19:49
That’s what the proposed rules say. However, the IRS has waived the penalty for not taking a beneficiary RMD in 2023 (as well as 2021 and 2022) because the IRS has not yet finalized the rules.