Inherited Beneficiary Question
Hello, I have a new client with an IRA Trust BDA and the original depositor passed in 2014. The beneficiary (non-spouse) passed away in 2021. This trust is now the second inheritor of these assets. What RMD rules do they follow? 10 year rule?
Thank you.
Permalink Submitted by Alan - IRA critic on Thu, 2023-01-19 15:34
Yes, 10 year rule with annual RMDs that continue the non spouse beneficiary RMD schedule in years 1-9 IF the original owner passed after their RBD. Otherwise, 10 year rule without annual RMDs in years 1-9.