CLARIFICATION NEEDED FOR BENEFICIARY IRA RMD
I would appreciate any clarification on this case. Original IRA owner passed in 2018 and was taking annual RMD. Four non-spouse beneficiaries (children and grandchildren) inherited assets. Under the Cares Act, is 2020 RMD waived for the beneficiaries. If I recall, as recent as a few months ago, the non-spouse beneficiaries must take the RMD, though it would appear that now the information I am seeing indicates the 2020 RMD for beneficiaries is waived. Any thoughts?
Permalink Submitted by Betsy Ratashak-Vogel on Thu, 2020-09-10 19:20
My understanding is that beneficiary RMDs are also waived.
Permalink Submitted by Alan - IRA critic on Thu, 2020-09-10 21:40
Yes, all RMD are waived for 2020, both for owners and beneficiaries. These non spouse beneficiaries hopefully established separate inherited IRA accounts by 12/31/2019 which would enable each to use their own age to calculate beneficiary RMDs. Such beneficiaries were also responsible for completing decedent’s 2018 RMD if decedent had not completed it before passing.