IRA heirs

Submitted by RonC on Thu, 2023-12-07 23:05

If I leave my TIRA to my sons (in 40s) will they be able to hold/ defer in inherited IRAs until they reach RMD age OR will they have to deplete those inherited IRAs over the next 5 or 10 years ?

Same question for the Roth please.

I read somewhere that the age of the older beneficiary would be used if one inherited IRA was shared vs each having their own inherited IRA.

Please respond at your convenience.
Thanks, Ron



Submitted by Alan - IRA critic on Fri, 2023-12-08 00:01

The sons will be subject to the 10 year rule unless they qualify as disabled or chronically ill at the time of your death. During those 10 years they will have to take annual RMDs in years 1-9 for your TIRA only, and only if you pass after your required beginning date for RMDs. There will not be any annual RMDs for the inherited Roth IRA, just the 10 year rule. If annual RMDs are required for your TIRA, they can each use their own ages as long as separate inherited IRAs have been established for each by the end of the year following your year of death. If that deadline is not met, the age of the oldest beneficiary will determine those annual RMDs in years 1-9.

Submitted by RonC on Fri, 2023-12-08 21:17

Thanks .. my 1st RMD is next year. So, assume they’ll have to deplete TIRA in 10 years and do so at an RMD rate calculated by their age ? I would have assumed their age / life expectancy would yield a much smalles payout. Or is this just to establish a minimum withdrawal with full depletion still req’d within 10 years. 

Submitted by Alan - IRA critic on Fri, 2023-12-08 21:25

  • If you pass after your RBD, they will be subject to the 10 year rule for both IRA types, but also have to take annual RMDs on only the inherited TIRA. The inherited Roth can be held without distributions until year 10, giving the Roth assets more time to generate tax free earnings.
  • Beneficiary RMDs in years 1-9 from the inherited TIRA will help avoid a large taxable distribution in year 10, but those annual RMDs will be less than taking out an equal amount in each of the 10 years. They can always take out more than the annual RMD if they want the taxable impact to be about the same each year.

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