Inherited IRA RMD
Does anyone have information yet that can clarify if I will use a revised life expectancy table to figure what RMD’s for 2021 need to be or do we stick with the life expectancy tables from back when I inherited the IRA several years ago.
I have my RMD spreadsheet set up to take the life expectancy factor from back when I inherited the IRA and then reduce that factor by 1 each successive year. Is that the correct method?
Thank you!
Permalink Submitted by David Mertz on Sat, 2021-01-23 19:04
The IRS has announced that the new life-expectancy tables will apply for calculating RMDs for 2022 and beyond, so the old tables are still to be used for determining RMDs for 2021. For 2022, you’ll need to re-determine your life expectancy for your age on your birthday in the year following the year of the death of the decedent and subtract 1 for each subsequent year. In applying your spreadsheet to 2022 and beyond, you’ll simply replace the life expectancy that you originally used with the new life expectancy value as if the new life expectancy value had been in effect all along.
Be aware that your successor beneficiaries will be subject to the 10-year rule, requiring this inherited IRA to be fully distributed by the end of the 10th year following the year of your death.