RMDs for Inherited-Inherited IRA
My client inherited an inherited IRA. The original inheritor was under the old stretch rules. Does my client continue with these stretch distributions as before, or do they now fall under the new 10-year rule?
My client inherited an inherited IRA. The original inheritor was under the old stretch rules. Does my client continue with these stretch distributions as before, or do they now fall under the new 10-year rule?
Permalink Submitted by Alan - IRA critic on Fri, 2023-11-10 15:09
Maybe both. If the original IRA owner passed after their RBD, the client (successor beneficiary) must continue the RMD schedule of the prior beneficiary and still drain the account in the 10th year. If original owner passed prior to RBD, the 10 year rule still applies, but the annual RMDs in years 1-9 do not apply. The age of client is immaterial, but client will have to determine when the original owner passed in relation to their RBD, which was likely 4/1 of the year after the year they reached 70.5.