Disabled Non-Spouse IRA Beneficiary

Submitted by Daniel Fisher on Mon, 2023-03-20 20:45

I’m working with a client who is disabled and inherited his mother’s IRA this year. I’m under the impression that the RMDs can be taken based on my client’s life expectancy similar to a spouse inherited IRA and does not go under the 10 year rule. My question is how do you tell or prove to IRS that the non-spouse beneficiary is disabled?



Submitted by Alan - IRA critic on Mon, 2023-03-20 21:36

  • If the beneficiary is getting SSD, that will be sufficient. Otherwise, they should get a letter from their MD indicating that the beneficiary was disabled on the (DOD) under Sec 72(m)(7). That should establish EDB status in the unlikely case of an IRS inquiry. A copy of SSD determination or if none the MD statement of disability should be provided to the IRA custodian no later than 10/31 of the year following the year of death. The first EDB RMD would be due by the end of that year. Sec 72(m)(7) copied below:
  • (7)Meaning of disabled”For purposes of this section, an individual shall be considered to be disabled if he is unable to engage in any substantial gainful activity by reason of any medically determinable physical or mental impairment which can be expected to result in death or to be of long-continued and indefinite duration. An individual shall not be considered to be disabled unless he furnishes proof of the existence thereof in such form and manner as the Secretary may require.”

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