Hello

To qualify as an Eligible Designated Beneficiary for purposes of applying the stretch provision to a non-spouse inherited IRA I’m familiar with Sec. 72(m)(7) dealing with disability definition, that says:

“For purposes of this section, an individual shall be considered to be disabled if he is unable to engage in any substantial gainful activity by reason of any medically determinable physical or mental impairment which can be expected to result in death or to be of long-continued and indefinite duration. An individual shall not be considered to be disabled unless he furnishes proof of the existence thereof in such form and manner as the Secretary may require.”

But I can’t seem to find the corresponding definition of ‘Chronically Ill’…at least in the IRC. I did find this in IRS Pub 502

“Chronically ill individual.

An individual is chronically ill if, within the previous 12 months, a licensed health care practitioner has certified that the individual meets either of the following descriptions.
1.He or she is unable to perform at least two activities of daily living without substantial assistance from an-other individual for at least 90 days, due to a loss of functional capacity. Activities of daily living are eating, toileting, transferring, bathing, dressing, and conti-nence.
2.He or she requires substantial supervision to be protected from threats to health and safety due to severe cognitive impairment.”

Would this then be the applicable definition of ‘chronically ill’? I ask because my cousin is an only child, age 61 and her widowed mother has a fairly large TIRA she is not drawing from and at age 87 has been put in the Medicare hospice care. My cousin has been diagnosed with chronic lupus which is controlled with medication but it is indeed a chronic disease. So is there another definition of ‘chronic disease’ or is the Pub 502 the definition the IRS will require to be an EDB?

Thanks

BruceM