Re: IRA inherited after RBD but before RMD taken this year…

Submitted by Steven Halko on Tue, 2023-05-16 13:18

Client inherited an IRA this year. Original owner was past RBD age and has been taking RMDs.
However, RMD had not been satisfied yet for 2023.
I realize RMD needs to be satisfied first before the balance of the IRA is transferred into the new Inherited IRA for my client, but will my client have to take an additional distribution from the inherited IRA this year as part of the 1-9 year RMD rule based on her life expectancy?
Or can she wait until next year to start taking the 1-9 year distributions.
Thank you.



Submitted by Alan - IRA critic on Tue, 2023-05-16 14:29

  • There are never 2 RMDs for a single year. For 2023 the RMD is the owner’s RMD, which must be completed by the tax filing deadline for 2023 (4/15/2024) plus extensions. This RMD cannot be completed until the beneficiary establishes her inherited IRA and the distribution must be made to beneficiary’s inherited IRA.
  • Beneficiary RMDs for years 1-9 of the 10 year rule start in 2024 based on client’s age in 2024, and the inherited IRA must be drained by 12/31/2033. 
  • Because the 2023 year of death RMD is not delinquent until 2024, the client could wait and take both RMDs in 2024. All distributions are taxable to client in the year received.


Add new comment

Log in or register to post comments