Inheriting an Inherited IRA
If non-spouse inherits an inherited IRA, do they just begin a new 10 year withdrawal requirement, or do they take over what was left on the previous inherited IRA?
If non-spouse inherits an inherited IRA, do they just begin a new 10 year withdrawal requirement, or do they take over what was left on the previous inherited IRA?
Permalink Submitted by Alan - IRA critic on Mon, 2022-10-31 18:55
They begin a new 10 year rule period unless the first beneficiary was already subject to the 5 or 10 year rule. Within those 10 years, the IRS has proposed that annual LE RMDs are required if the original owner passed on or after their RBD. Those annual RMDs would be a continuation of the RMD schedule of the first beneficiary. If the IRS backs off this proposal when the Regs become final, there would be no annual RMDs required, just the 10 year rule.If the first beneficiary was subject to the 5 year or 10 year rule, then the successor beneficiary can only complete that 5 or 10 year period.