Inherited-Inherited IRA

Submitted by Tom Burns on Wed, 2023-01-18 16:51

Father inherited IRA from mother pre Secure Act and is taking lifetime distributions based on his life expectancy. He dies and his spouse is the named successor beneficiary. What are the spouse’s options? Continue payout using husbands lifetime expectancy? Withdraw the funds over 10 years under Secure Act rules?



Submitted by Alan - IRA critic on Wed, 2023-01-18 17:32

HUSBAND? inherited from his mother and was taking LE RMDs?  If so, his spouse is subject to the 10 year rule and will also have to continue his RMD schedule in years 1-9 if mother passed after her RBD. Divisors must also be reset to reflect the new RMD tables effective in 2022. If mother passed prior to her RBD, it appears that spouse would be able to discontinue husband’s annual RMDs and just drain the account after 10 years.

Submitted by Tom Burns on Wed, 2023-01-18 19:20

I should have said son inherited from his mother. He died and his surviving spouse is now the receiving beneficiary of the mother’s IRA. I am assuming she will have to drain the account under Secure Act 10 year rule.

Submitted by Alan - IRA critic on Wed, 2023-01-18 19:40

Yes, and continue annual beneficiary RMDs in years 1-9 if mother passed after RBD.

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