WHO CAN DELAY THEIR RMD UNDER SECURE 2.0?

Submitted by Kevin O'Hearn on Wed, 2023-01-11 16:54

Does SECURE 2.0 also affect the RMD of beneficiary/inherited accounts?

Let’s say the late, great Kirstie Alley passed in 2021 at age 70, leaving an older spouse (Norm) as her beneficiary.

Norm then accepted the funds as an inherited account to defer RMD payments until the end of the calendar year that Kirstie would have reached age 72 (2023).

Is Norm now able to delay until the end of the the end of the calendar year that she would have turned 73 (2024)?

Cheers!



Submitted by Alan - IRA critic on Wed, 2023-01-11 18:54

  • Yes. A sole surviving spouse beneficiary has always been able to delay beneficiary RMDs until the year the deceased spouse would have reached their RMD age. That RMD age is now increased for those born in 1951 and later. In this example Kirstie would have been 72 in 2023, so her first RMD year would have been 2024 at age 73. Norm will not need to take a beneficiary RMD until 2024.
  • Then starting in 2024, Sec 327 of Secure 2.0 kicks in. This Reg needs further clarification, but it appears that Norm could not only assume ownership of the inherited IRA in 2024 as before and use the Uniform Table, but could use HER AGE to calculate the Uniform Table RMD. This last provision likely needs clarification as the Uniform Table has always required use of the recipient’s actual age, not a decedent’s age. 

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