Eligible Designation Beneficiary Question
Hello,
I have a scenario were 2 sisters (ages 61, 63) inherited an IRA from their mom in 2010. Now one of the sisters passed in 2022 and named the other sister the primary bene. Would the remaining sisters be considered an eligible designated beneficiary and take life expectancy payments or would she fall under the 10 year rule?
Thank you.
Permalink Submitted by Alan - IRA critic on Wed, 2022-09-14 19:13
The 10 year rule, because an EDB must be a designated beneficiary as the “D” in EDB indicates. Remaining sister is a successor beneficiary. However, since Mom apparently passed after her RBD in 2010, the remaining sister will have to continue the RMD schedule of deceased sister in Years 1-9 of the 10 year period. At least, that is what the proposed Secure Act Regs indicate at this point. Changes are possible when the Regs are finalized, whenever that might be.