IRA Named Estate as Bene
Hi-
I had a client who named his estate ( i know he shouldn’t have) who dies on 7/2/2017 at age 45. I know because he died before his RBD that his estate must empty the IRA by end of 5th year after death. But does he get an extra year due to COVID. Does his family/estate have until 12/31/23 to make sure all funds are distributed out of the IRA?
Thanks
Permalink Submitted by Alan - IRA critic on Wed, 2022-09-07 18:40
Yes, the CARES Act provides that the year 2020 does not count in prior 5 year rule periods. Estate (or estate beneficiary who received an inherited IRA through assignment) has until 12/31/2023. That said, they may still want to take a 2022 distribution to spread the tax impact over 2 years.