Inherited IRA
My brother passed away in 2014 and i inherited his IRA as his sister so- non spousal. Back when i inherited the IRA there was no 10 year rule. I skipped the RMD last year due to Cares act but this year i have to resume the RMD. I forgot how to do this- is it RMD based on my brothers DOB or my own DOB? Thanks
Permalink Submitted by Alan - IRA critic on Wed, 2021-06-09 17:07
There were 2 possibilities in 2015 for your beneficiary RMDs. In most cases you would have used your age attained in 2015 and obtained the divisor from the single life table, then reduced it by 1.0 for each year thereafter. When you resume such RMDs in 2021, the divisor will be 2.0 less than the divisor you used for 2019.
The other possibility is less likely, but would apply if your brother passed after his required beginning date (4/1 of the year following the year he would have reached 70.5) AND you are older than him. In that case, you would have used HIS remaining LE for your annual RMDs since it would be longer than yours. You would have determined his age in 2014 and the single life table divisor for that, then reduced that divisor by 1.0 for your first beneficiary RMD in 2015 and beyond. Same 2.0 reduction from the 2019 divisor as above.
Therefore, you will need to determine if you were using your own age, or have been using his age from the start. You cannot change methods, but if you find out you were doing this wrong, you can switch to the correct method for 2021 and beyond.