Inherited 401k after RBD – 2 benes
Decedent had 401k in which he was taking RMDs and died in 2022. His 2 beneficiaries each received half. Do they each calculate their respective 10-year payout on each’s age (single life expectancy) or based on one (the oldest).
Permalink Submitted by Alan - IRA critic on Mon, 2023-04-24 18:37
If they do direct rollovers to separate inherited IRA accounts by the end of 2023, future year RMDs will be based on the age of each beneficiary. However, the 2023 401k beneficiary RMD must be distributed before the direct rollover, and the plan may or may not allow the younger beneficiary to use their longer LE for 2023 under the separate account rules. The 2022 year of death RMD must also be completed if the decedent did not complete it before passing.