Twins brothers, DOB Feb 1945. One brother passed away in Dec 2020.
Beneficiary (surviving twin) is an EDB so proceeding with Life Expectancy stretch, instead of 10-yr rule.
12/31, 2021 value in Bene IRA was $3,941,139. I’m coming up with an RMD for 2022 as $300,851 (14.1 in 2021 first RMD year, 13.1 factor in 2022)
Can anyone help to verify the above?
Based on the above, what happens if he passes away in 2027 with one kid beneficiary (non-EDB). From my understanding, the adult child (successor bene) will have their own 10-year clock (because 1st beneficary was an EDB and took stretch). In addtion to the 10yr clock, there will be an annual RMD based on the LE set when the decedent passed away (year 2020)? Is it the life expectacy of the successor beneficary when the original owner passed away, or does the successor bene continue the same facto rthat the 1st beneficiary was under?
The successor beneficiary would continue the RMD schedule of the EDB, reducing the divisor by 1.0 each year. This is the same as under pre Secure rules, and it appears that the 1.0 divisor reduction will result in the inherited IRA not making it to the end of the 10 year rule period in 2037.
Permalink Submitted by Alan - IRA critic on Thu, 2022-11-17 18:22
Yes, you are correct for 2022. Hopefully, the 2021 RMD was completed using the old tables.