Eligible Designated Beneficiary who reaches age 21..do they get 10 MORE years?
In Example 1 from the April newsletter, Ana, age 14 inherits an IRA from her mom and she can stretch until age 21, and then the ten year rule kicks in. Does she now get another 10 years to empty the account, or does the first 7 years when she stretched count as part of the ten years?
Permalink Submitted by Alan - IRA critic on Tue, 2022-03-29 00:01
She get another 10 years, and the inherited IRA must be drained by the end of the year she turns 31. The annual RMDs cease in the year after the year she reaches 21 except in the very unlikely case where mom passed after her RBD.
Permalink Submitted by Jason McBride on Tue, 2022-03-29 14:35
Thank You! And in that unlikely case of mom’s death after her RBD, she’d continue the 10-year rmd’s according to the single life table, same as she was using before?
Permalink Submitted by Alan - IRA critic on Tue, 2022-03-29 15:24
Yes, that is correct.