Brother inherits IRA 12/10/2020

Submitted by Marvin Rauchbach on Mon, 2023-03-20 14:56

No RMDs have been taken yet. Decedent date of death 12/10/2020. Her date/birth 03/02/47. Hence she was taking RMDs. bene d/b is 07/18/52. can you tell me retro RMDs , 2023 RMD, and how to calculate moving forward.

thank you



Submitted by Alan - IRA critic on Mon, 2023-03-20 16:08

  • Since beneficiary is an EDB (not more than 10 years younger than decedent), the 2021 and 2022 RMDs must be made up and Form 5329 with 1040X filed for 2021 and 2022 (if 2022 return has already been filed) to request the penalty be waived. The 10 year rule does not apply here. 
  • 2021 RMD divisor is 17.8 divided into the 12/31/2020 balance.
  • 2022 RMD divisor is 18.6 (reset to the new tables) divided into the 12/31/2021 balance
  • 2023 divisor is 17.6 divided into the 12/31/2022 balance.
  • Each year thereafter the divisor is reduced by 1.0.
  • All distributions will be taxable in the year distributed (2023).

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