inherited twice IRA RMD rule
I have a client who inherited her husband’s inherited IRA’s (his parents). Both parents passed away in 1998 – 1 at age 65 and the other at age 71. husband just passed away this year. Does the 10 year rule apply in this case? How do you calculate the RMD? Do you use the original deceased DOB and DOD or the most recent? Please advise. Thank you.
Permalink Submitted by Alan - IRA critic on Wed, 2023-11-01 23:03
One parent passed prior to their RMD and the other after their RMD (assuming that the parent who passed at 71 passed on or after 4/1 of the year following the year that they reached 70.5). For the inherited IRA of the parent that passed at 65, the 10 year rule applies and there are no annual RMDs in years 1-9. For the other inherited IRA, the 10 year rule also applies, but the RMD schedule that husband was using must be continued with the annual 1.0 divisor reductions. These two inherited IRAs must continue to be kept separate. The age of the client is immaterial.