Distribution options for anyone who has an inherited non spouse IRA, who is less than 10 years younger years than the owner

Submitted by Frank Miyamura on Sun, 2020-11-29 19:03

I’ve read in only a couple of articles that anyone who has an inherited non spouse IRA, who is less than 10 years younger than the owner who died in 2020, can choose between the Single Life Expectancy Method or the 10 Year Method to take distributions. My questions are #1 is this correct and #2 how does he let his choice be known to the IRS? Thank you for your help.



Submitted by Alan - IRA critic on Sun, 2020-11-29 19:47

  • It does not appear to be correct that the 10 year rule can be elected by an eligible DB. However, there is a gray area that the IRS will have to clarify. If the beneficiary is actually older than the deceased owner, who passed after their RBD, the beneficiary may be able to use the remaining LE of the decedent as they could under prior rules, which would be longer than that of the beneficiary.
  • However, if the beneficiary is younger, but less than 10 years younger, there is no benefit to using the decedent’s older age. In that case, the beneficiary would have to use their own Table I LE to calculate the RMD.

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