Age Factor to Use
with the release of notice 2023-54 allowing beneficiaries to defer RMD’s on inherited IRA’s for 2023, I have a question on the factor to use from the single life table for the first distribution in 2024. The 80 year old IRA owner died in 2022. The non-spouse beneficiary will be 54 in 2023, 55 in 2024. For the first RMD the beneficiary will take in 2024, should I start with the age 54 factor of 32.5 for 2023, subtract 1, and then use 31.5 for the factor for the 2024 RMD? Or should I begin with the 31.6 factor for a 55 year old for 2024 and then subtract one for a distribution factor of 30.6 in 2025?
Permalink Submitted by Alan - IRA critic on Tue, 2023-08-22 15:54
The former – resulting in a divisor of 31.5 for the 2024 RMD and 30.5 for the 2025 RMD. Of course the beneficiary can still take a distribution of any amount in 2023 if they prefer to even out the taxable income over the 10 year period.