Inherited I.R.A. of a Grandchild
If a grandchild 6 years old, receives an inherited I.R.A from her grandfather, does she qualify for RMD’s based on life expectancy to age 26, then has 10 years to withdrawal the balance of the funds?
Frank Dogger
If a grandchild 6 years old, receives an inherited I.R.A from her grandfather, does she qualify for RMD’s based on life expectancy to age 26, then has 10 years to withdrawal the balance of the funds?
Frank Dogger
Permalink Submitted by David Mertz on Wed, 2023-11-29 14:36
No. Only the child of the IRA participant is eligible for the treatment that you mentioned. A grandchild is not and is subject to the 10-year rule the same as any other non-EDB. Under the 10-year rule, if the decedent died after their Required Beginning Date for RMDs, the grandchild is also subject to annual beneficiary RMDs based on their life expectancy.