Non Spouse Inherited IRA
My client, born in 1946, passed away in 2021. His ex-wife, born in 1945, is the beneficiary of his Inherited IRA (from his father) and Rollover IRA. It is my understanding that because she is not more than 10 years younger than him she can begin taking RMDs based on HER life expectancy from the R/O IRA. Does she do the same from the inherited IRA based on the ex-husband’s year of death or his father’s year of death?
Permalink Submitted by Alan - IRA critic on Wed, 2022-02-02 18:44
That’s correct about the RO IRA. She qualifies as an eligible designated beneficiary (EDB) and can stretch the inherited RO IRA over her non recalculated single life expectancy. That means her 2022 RMD divisor from the single life table will be reduced by 1.0 for each year after 2022. The ex wife is also responsible for completing client’s 2021 year of death RMD if client did not do so.
The now twice inherited IRA from client’s father now falls under the 10 year rule, meaning that client has no annual RMDs, but must drain the account by 12/31/2031. This assumes that client inherited his father’s IRA prior to 2020.