Successor Beneficiary IRA pre and post law change
I have a grandfather who passed in 2014. His son was beneficiary and elected to stretch his IRA. The son died in 2022 and his 2 children are now successor beneficiaries at the ages of 16 and 19. Are they allowed to continue to stretch over their lifetimes or does the new 10 year rule apply? In Illinois the age of majority is 21, but will age 18 apply to the RMD?
Permalink Submitted by David Mertz on Wed, 2023-11-29 14:39
The successor beneficiaries are subject to the 10-year rule. If the grandfather died after his Required Beginning Date for RMDs, the successor beneficiaries are also subject to annual beneficiary RMDs under the 10-year rule.