Inherited IRA rollover from 401(k)
401(k) plan participant was still working at age 75 and died pre RBD in 2021. The non spouse beneficiary has rolled to an inherited IRA. Do the pre RBD death rules still apply for the inherited IRA even though the deceased would have died post RBD had the money been in an IRA at the time of death?
Permalink Submitted by Alan - IRA critic on Thu, 2022-12-22 16:21
Yes, the plan was inherited pre RBD and that carries over to the inherited IRA. Therefore, there will be no annual RMDs required within the 10 year rule period, if applicable. The inherited IRA must be drained by 12/31/2031. However, if the beneficiary is an EDB life expectancy RMDs would apply instead of the 10 year rule unless the EDB opted out of EDB treatment and into the 10 year rule.