Inherited, Inherited IRA

Submitted by Lisa Heffley on Thu, 2022-10-27 17:14

What is the RMD treatment of this scenario:

Father (deceased) had an IRA that 2 children (A and B) inherited in 2012. Both are taking RMD’s based on life expectancy.
Child A passed in 2022 and Child B inherits Child A’s inherited IRA. Child A and B have a 3 year age difference. What is the rule for Child B’s future RMD requirements?

Child B also inherited an IRA from Child A that was previously an IRA Rollover so I’m assuming the 10 year rule applies here.

TYIA for any thoughts/opinions.



Submitted by Alan - IRA critic on Thu, 2022-10-27 19:10

  • Child B is a successor beneficiary to B and will be subject to the 10 year rule. If father passed after his RBD in 2012, B will also have to continue the annual RMD schedule of A in years 1-9 of the 10 year period. This assumes that the proposed IRS RMD Regs are finalized as proposed.
  • For the second IRA that A owned, B is an EDB due to being not more than 10 years younger than A. Therefore, the 10 year rule does not apply, and B’s annual RMDs are based on B’s age in 2023. If A passed after RBD, B must also complete A’s 2022 owner’s RMD if A did not complete it.

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