Non_Spouse Inherited IRA
Owner of IRA is taking RMD’s and dies. The beneficiary is a non-spouse, who inherits the IRA and continues making RMD’s withdrawals, but following the single life expectancy table schedule.
When that beneficiary dies what withdrawal schedule will their beneficiary(s) follow? Will it be the single life expectancy table and based on what “age”? The age of the deceased beneficiary or the age of the new beneficiary(s), who are about 30 years younger.
Thank you
Permalink Submitted by mk foss on Wed, 2010-06-23 21:02
When the IRA owner dies and the nonspouse beneficiary inherits, the distribution period is fixed. Let’s say that Bob is the beneficiary and he’s 70 the year after the death of the owner. His first distribution would be 1/17th of the prior year-end balance. The next year it’s 1/16th, etc etc. If he dies before the 17 years have elapsed, his beneficiaries receive the rest of his payments on the same schedule. So if he died after 10 years, the beneficiaries would receive payments over the remaining 7 years in this example.