Inherited IRA RMD
Client inherited an IRA from his 61-year-old mom. DOD was in June 2019.
Is he required to take annual distribution based on his life expectancy?
Or does he fall under the 5-year-rule to have fully-distributed by end of 5th year?
Client inherited an IRA from his 61-year-old mom. DOD was in June 2019.
Is he required to take annual distribution based on his life expectancy?
Or does he fall under the 5-year-rule to have fully-distributed by end of 5th year?
Permalink Submitted by Alan - IRA critic on Tue, 2021-12-21 17:45
Since Mom passed prior to RBD, client has a choice between LE and the 5 year rule. LE would be the better choice in most cases, and he should complete his 2021 beneficiary RMD ASAP. If he elects the 5 year rule, there are no annual RMDs, but the inherited IRA must be drained by 12/31/2025 (extra year provided by the CARES Act).