Non-spousal inherited IRA

Submitted by Vernon Childress on Thu, 2020-05-14 21:25

I have a client that inherited a non-spousal IRA from his mother in 2009. My client was 63 when he inherited. the IRS chart shows a life expectancy of 22.7 yrs which would take him to age 85.7. Does he have to liquidate whatever is remaining if he lives past his life expectancy or does he just continue with RMD’s?



Submitted by Alan - IRA critic on Thu, 2020-05-14 21:52

I assume it was not a non spousal inherited IRA UNTIL he inherited it. If so, his initial divisor of 22.7 is reduced by 1.0 each year. Once the divisor drops to .7 the IRA would likely be drained that year unless it had a huge gain in that final year. That’s unlikely, but if it happened, then the IRA would be drained in the following year. There are no RMDs due in 2020, but the divisor will be reduced by 2.0 from the 2019 divisor for the 2021 RMD.

Submitted by Vernon Childress on Sun, 2020-05-17 01:26

Thanks for your information, It was very helpful.

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