Successor Inherited IRA – old rules
I have a client that died 10+ years ago, and had already started taking his RMD’s. The IRA’s were left in Trust for his wife. She was over age 71 and the Trust distributed an RMD based on her life every year. She died a few years ago (under the old rules) and the IRA was distributed to the other beneficiaries of the Trust, her adult children.
Are the RMD’s for her adult children based on the wife (mothers) life?
Are traditional and Roth IRA’s have the same RMD rules for the adult children?
Permalink Submitted by Alan - IRA critic on Wed, 2021-11-24 17:22
You are correct, both the inherited TIRA and Roth IRA must basically be distributed over the remaining life expectancy of mother, as if she was still living. However, if mother was the sole beneficiary of a qualified trust, she should have entered Table I every year instead of reducing the prior divisor by 1.0 (recalulation). Once she passed the, the children will be subject to the 1.0 divisor reduction (non recalculation), so actually the inherited IRAs will be drained a little faster than mother would have had to. The inherited Roth IRA is now long since qualified and distributions are fully tax free. Note that it may not be safe to simply reduce mother’s last divisor by 1.0 each year, since mother might not have been using the correct divisor in the first place.