I have a client that is a named beneficiary on his deceased brother’s IRA. My client is 9 years younger than his deceased brother. The deceased brother was born in August 1949, so this is after the June 30, 1949 cutoff date that would have required RMDs to start. So I’m assuming that the brother had not yet begun receiving RMDs. Since my client was less than 10 years younger, I believe he qualifies under the SECURE Act’s definition of an EDB (Eligible Designated Beneficiary). As such, he is allowed to use his own life expectancy to calculate RMDs.
My question is: When does he need to begin taking RMDs? Client is currently 62. Does he get to wait until he turns 72 to begin RMDs, or does he need to start next year (the year his brother would have turned 72)?
Thank you.
Bryan