Inherited IRA Non-Spouse
Hello, I have situation where an IRA account owner passed away this year at age 75 and took their RMD for 2018. The beneficiary is a non-spouse who is 80 years old and according to the resources that I have read, the beneficiary will need to take RMD’s starting in 2019 based on their life expectancy. However, I spoke with an advisor who questioned this and stated that the beneficiary could used the deceased life expectancy since the deceased was younger and stretch out the RMD’s. Have you heard of this? I was under the impression that the beneficiary could only use there life expectancy.
Thank you.
Permalink Submitted by Alan - IRA critic on Fri, 2018-08-17 16:04
The advisor is correct. This option only applies when the IRA owner passes after the RBD. When calculating the RMD for the beneficiary, the single life table is used and the divisor for 2019 is determined using the age of the decedent in the year of death (2018) and subtracting 1.0 from that divisor for 2019 and each year thereafter. For example, if decedent would still have been 75 on 12/31/2018, the beneficiary divisor for the 2019 RMD will be 12.4.