Beneficiary of a beneficiary IRA
The daughter (our client) inherited her mom’s IRA in 2017 and was stretching the RMDs. The daughter recently passed and her husband is the beneficiary of the beneficiary IRA. We see that he is now under the 10 year rule. But we need clarification as to whether he has to do RMDs each year over the 10 years, or can he wait until year 10 to take it out?
Permalink Submitted by Alan - IRA critic on Wed, 2023-03-29 17:09
He must continue the beneficiary RMD schedule used by his spouse including the 2023 year of death RMD. He continues to reduce the divisor by 1.0 each year. That might result in the inherited being drained prior to 2033, but if not it must be drained by the end of 2033 per the 10 year rule.
Permalink Submitted by Steve Ellis on Wed, 2023-03-29 19:11
Thank you! That’s what I would gone with but wanted to make sure.