Determining RMD on inherited deceased spouses IRA they inherited from their parent
I inherited my wife’s IRA this year. She had inherited the IRA from her father, and I was the designated beneficiary on her inherited IRA.
She had been taking yearly required RMDs. My question is, how do I calculate the RMD on this IRA? Do I do it the same way we did to determine the RMD when my wife was living?
Thanks for any help you can give in understanding how to determine the RMDs.
Permalink Submitted by Alan - IRA critic on Thu, 2021-12-30 17:35
Per the Secure Act, you are now subject to the 10 year rule under which there are no annual RMDs, but the account must be drained by 12/31/2031. However, if your wife did not complete her 2021 RMD, then you need to complete it by tomorrow. If that isn’t possible, you can complete it in January and file a 5329 with your 2021 tax return requesting that the penalty be waived. The IRS has been waiving the penalty after you make up the late RMD and file a proper 5329. To avoid a large taxable distribution in year 10, you may want to distribute the IRA gradually over the 10 year period, even though you are not required to.