Inherited IRA Life Expectancy Table Question
An IRA account holder takes her RMD for 2 years then passes away. She names her sister, also over 70 1/2, as the beneficiary. 2 years later, the sister passes away and the nephew (age 37) is the beneficiary of the inherited IRA. Can he use his life expectancy or does he have to use his Aunt’s (the sister’s) life expectancy?
Permalink Submitted by Alan Spross on Fri, 2008-05-16 22:57
The nephew must continue to use the remaining life expectancy of his Aunt. His own life expectancy does not apply as he is only a successor beneficiary. The divisor his Aunt was using needs to be reduced by 1.0 each successive year. He also has to be sure that his Aunt’s RMDs were current, and if not bring them current.