RMDs Req’d On Bene IRAs (2023 Plan)
We have a client who will be required to take RMDs during their 10yr period (deceased after RBD in 2020). Is there any reason that distributions in 2023 are 2021/2022 RMDs first – like the rule that RMDs have to be satisfied prior to conversions? Would we have to satisfy three RMDs (’21-’23) in the calendar year of 2023?
Permalink Submitted by Alan - IRA critic on Thu, 2022-10-20 16:18
This is a good question, and we do not know yet whether the IRS is going to waive those 2021 and 2022 RMDs or require that they be added to the 2023 RMD. However, with respect to non spouse inherited IRAs, conversions and rollovers are not allowed, so this question just relates to how fast the inherited IRA must be distributed. If those two RMDs are waived, it will just create a larger year end balance making the RMDs larger in years 3-10.