Inherited IRA calculation to determine RMD
I have 4 new clients that have inherited an IRA from their mother. My question is how is each individual Inherited IRA owner to determine their inherited IRA required minimum distribution calculated?
I have 4 new clients that have inherited an IRA from their mother. My question is how is each individual Inherited IRA owner to determine their inherited IRA required minimum distribution calculated?
Permalink Submitted by Alan - IRA critic on Mon, 2016-08-01 19:29
If separate inherited IRA accounts are established for each beneficiary by the end of the year following the year of death, each beneficiary can use their own single life expectancy for RMDs using their age at the end of the year following the year of death, and the single life table. The calculation is based on the amount of each beneficiary’s share as of 12/31 of the year of death. If mother did not complete her year of death RMD, the beneficiaries are responsible for completing it.