Bene IRA RMD ??
Client took over IRA as non spouse beneficiary last year … So now the account is a Beneficiary IRA … Client is 75 years of age … Being that it is now a Beneficiary IRA, does only the 10 year rule apply ? Or is the client subject to the normal RMD being age 72 or greater ?
Permalink Submitted by Alan - IRA critic on Mon, 2022-11-07 16:12
If the client is not an eligible designated beneficiary (EDB), and was named as the beneficiary, the 10 year rule will apply. There will also be annual LE RMDs required in years 1-9 if the IRA owner passed after their RBD, but not if owner passed prior to RBD. Age 72 is not a factor for client, as any beneficiary RMDs in years 1-9 would be calculated using client’s attained age in the year following the year of owner’s death.