non-spouse IRA beneficiary RMD rule for death prior to 1-1-2020
My fact pattern:
New client disabled niece beneficiary, age 22 when inherited in 2013.
Uncle DOD 11-23-2013, at age 55.
She has been taking RMD over her life.
Question:
Wouldn’t the 5 year rule apply here, even though disabled, since the 5 year rule came in by the Secure Act after he died?
Permalink Submitted by Alan - IRA critic on Mon, 2021-12-20 18:34
No, your client was entitled to life expectancy RMDs and those remain in place for pre 2020 beneficiaries until they pass. Client could have elected the 5 year rule, but she apparently did not. The Secure Act would result in the 10 year rule applying to client’s beneficiary when client passes.