Birth Date to Use When Calculating RMD of Second Inheritor
Mother who was taking RMDs (born 1922) died in 2017. Son (born 1947) was named beneficiary and was taking RMDs when he died in 2022. Niece was named son’s beneficiary of his inherited IRA.
What birthdate is used to figure niece’s RMD? Mother’s? Son’s?
Permalink Submitted by Alan - IRA critic on Fri, 2024-01-26 20:44
The RMD schedule of the son must be continued by the niece. The neice was also responsible for completing son’s 2022 RMD if he did not complete it before passing. In determining the correct divisors for niece the son’s divisors should be reset to reflect the new 2022 RMD single life table as if that table existed in 2018 when son inherited. An annual 1.0 reduction of the adjusted divisor continues to apply. Niece’s age is immaterial.