Clarification on a Successor Beneficiary
Just looking for clarification on a successor beneficiary.
Mom
DOB 9-10-1933
DOD 4-16-2013
Daughter inherited mother’s IRA
DOB 6-11-1956
DOD 5-19-2018
Two sisters now inherit the beneficiary IRA
I believe the two sisters who are now considered the successor beneficiaries; will have to follow the original designated beneficiary RMD schedule?
Permalink Submitted by Alan - IRA critic on Tue, 2018-10-16 00:22
That is correct. Mom passed after her RBD, and therefore daughter would be taking LE RMDs. Daughter then passes this year, and her successor beneficiaries can create separate inherited IRAs but both of these separate inherited IRAs must continue the RMD that the daughter would have taken had she lived. They are also responsible to complete the 2018 RMD of the daughter if the daughter did not complete it. They are not responsible for 2017 and prior RMD deficiencies of either daughter or Mom if there were deficiencies.