Permalink Submitted by Alan - IRA critic on Fri, 2020-05-08 21:09
If an IRA is inherited by the estate, the 5 year rule applies only if the IRA owner passed prior to their required beginning date. If death was on or after the RBD, the IRA must be distributed over the remaining life expectancy of the deceased owner. The Secure Act had no effect on these rules.
Note that the RBD itself has changed. Prior to 2020, for an IRA it was 4/1 of the year following the year the deceased owner reached 70.5. For deaths in 2020 or beyond, the RBD is 4/1 of the year following the year the deceased owner reached 72. However, since RMDs are waived for 2020 there are no RBDs of 4/1/2021.
You may wish to provide the date of death and the age of decedent on the DOD for a specific response on the RMD requirements of the estate or beneficiaries of the estate.
Permalink Submitted by Alan - IRA critic on Fri, 2020-05-08 21:09