Inherited IRA – Non Recalculation Method
What if a pre-2020 inherited IRA is using the non-recalculation method and then the IRS updates the RMD tables with new factors? Does the individual continue to subtract 1 from the original factor or can they revise it using the updated factors?
Permalink Submitted by Alan - IRA critic on Mon, 2024-01-22 23:38
Starting with 2022 beneficiary RMDs, the divisor should be “reset” to those of the new tables. This is done by using the new tables to determine what the first year beneficiary divisor would have been had the new tables applied to that first year. That new initial divisor is then reduced by 1.0 for each year thereafter. If the divisor was not reset in 2022 or 2023, that just results in a higher distribution in 2022 and 2023 than would have been required, but the divisor can still be reset properly in 2024 to take advantage of slightly reduced RMDs starting in 2024.