divisor for calculating 2021 RMD for inherited IRA

Submitted by Howard Hook on Wed, 2021-01-06 00:22

Taxpayer has inherited IRA from mother. He last took an inherited RMD in 2019 when his remaining life expectancy was 18.

For 2021 is the new divisor 17 or 16?
Do you subtract 2 even though no RMD was required in 2020? Or is it as if 2020 did not exist and you only subtract 1 from 18 and use 17.

Hope I explained that correctly

Thanks
Howard

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Permalink Submitted by Alan - IRA critic on Wed, 2021-01-06 00:31

If his correct divisor for 2019 was 18, then his 2021 divisor is 16. The 2021 divisor is therefore what it would have been had 2020 RMDs not been waived. But his 2022 divisor will not be 15 because the new tables take effect in 2022 and taxpayer will have to reset his divisors next year to take advantage of the new tables that will somewhat reduce RMDs.