Non Spouse Inherited IRA
I continue to read with interest the emails from Ed Slott about updated IRS rules about the subject. Now the non spouse ( excluding EDB’s ) instead of deciding how much to to withdraw each year over the 10 year required period to fully empty the account, must take RMD’S each year, and withdraw whatever balance remains after the 10th year. So here’s my question:
Is there a chart, or table that has been published showing what the RMD must be each year? Is it based on the age of the non spouse beneficiary?
Thanks.
Mel Langer
Permalink Submitted by Alan - IRA critic on Mon, 2022-03-07 22:09
The RMD is the same as if the beneficiary was an EDB using the single life table with annual 1.0 divisor reduction. That means the older the beneficiary is the greater share of the balance must be distributed before year 10. Remember, these annual RMDs are only required when the IRA owner passed on or after the RBD.
However, if the beneficiary is not more than 10 years younger than the owner, the beneficiary is an EDB and not subject to the 10 year rule. And if the beneficiary is actually older than the owner, the beneficiary can use the longer remaining LE of the owner, as was the case prior to Secure.