Secure ACT RMDs

Submitted by David Mitchell on Thu, 2020-05-14 13:31

If an IRA owner, who was over 70.5 in 2019 and subject to RMDs passed away in 2019 but the child did not take the IRA as a bene IRA until 2020, would this be subject to the old or new stretch rules?



Submitted by David Mertz on Thu, 2020-05-14 14:19

  • The decedent’s beneficiary is subject to the old rules if the decedent died before 2020.
  • The IRA became maintained for the benefit of the beneficiary at the moment of the decedent’s death.  It doesn’t matter when the IRA was formally transferred to an inherited IRA.

Submitted by Alan - IRA critic on Thu, 2020-05-14 16:33

Note that the beneficiary is responsible for completing the father’s 2019 RMD if father did not complete it before passing. The only exception to that is if father attained age 70.5 in 2019 rather than prior to 2019.

Add new comment

Log in or register to post comments