Inherited IRA
I have a client that inherited IRA from his father. He has a properly titled inherited IRA and is taking the RMD based on his age.(subtracting 1 each year from factor). What happens at his death?? If beneficiary wants to contine to stretch, do they take RMD’s using the same factor as son used or do they now use their age with a new factor?
Permalink Submitted by mk foss on Tue, 2011-10-11 21:39
When the current beneficiary dies, his heirs continue to take distributions from the IRA continuing the pattern that’s been established. You don’t get a further stretch at the death of a beneficiary. For example, son inherits because Dad died when he was 69. His age the year after the death (70) gives a factor of 17.0. If the son dies after receiving 8 RMDs, his beneficiaries will continue the account for the remaining 9 years.