Inherited IRA
“A” inherits a traditional IRA from parent, then names child “B” as next beneficiary. “A” dies. Is “B” required to take all distributions from the IRA within the next 5 years or can “B” stretch distributions under the original schedule established based on “A”‘s life expectancy? Thanks.
Permalink Submitted by Alan Spross on Thu, 2011-03-10 20:03
B does not get to re calculate to recognize their own age. B must continue the RMD schedule that A elected based on A’s age in the year after parent’s death. Unlikely that A would elect the 5 year rule, but if that were the case, B would be stuck with it as well. B would NOT be required to drain the account in 5 years unless that is what A elected.