Inherited non-spouse IRA and RMD
So the client inherits an IRA from her 98 year old Aunt in 2009. Client is age 70 in 2010. I’m assuming that if the client had the IRA ‘titled’ correctly after inheritance – that she can stretch the IRA and use the Single Life table – meaning she divides the 12/31/2009 value of the IRA by 17 to get to the RMD amount.
I get confused – thinking at first that she would have to take distributions at her AUNT’s schedule – but now having read up on this I think that her inherited IRA is titled properly and she can in fact, stretch the RMD’s, the whims of the Custodian not withstanding…
Yes?
Dkmcconlog
Permalink Submitted by Alan Spross on Fri, 2010-04-30 04:00
Correct. Her first RMD is due by the end of this year and the divisor is 17 if she will not reach 71 by year end. After that, the divisor is reduced by 1.0 each year.