Distribution options for beneficiary of Inherited IRA
We have a client who inherited an IRA from her mother. Our client just passed away. Our client named her son as the beneficiary of her Inherited IRA. What are the son’s options for this account? Can he keep it coded as an Inherited IRA in his name? Does he need to take out distributions within a specific time period or can they be stretched over his lifetime?
Thank you
Permalink Submitted by Al Fry on Mon, 2010-01-04 20:54
He can take it over as an inherited IRA. The RMDs, however are based on the balance of his mother’s RMD payout period; they cannot be stretched out over his LE.