Beneficiary IRA
Trying to cut through the confusion:
Son inherits IRA from his mother who died February 2020 having taken the RMD for that year. No RMD taken in 2021 or 2022.
Dates mean under 10 year rule, should RMD have been taken in 2021 & 2022? and how much should be taken in 2023.
Are the 10 year RMDs based on the table as if the 10 years didnt exist and at the end whatever remains must be taken?
Thanks as always.
Permalink Submitted by Alan - IRA critic on Mon, 2023-08-28 18:00
The IRS has waived the 2021-2023 beneficiary RMDs due to delay in finalizing the proposed Secure Act Regs. But these RMDs will likely begin in 2024. You are correct that these annual RMDs are calculated as if the 10 year deadline did not exist. In this example, son must determine the 2021 single life table divisor under the current table and then reduce that divisor by 3.0 for the 2024 beneficiary RMD. Of course, son can take voluntary distributions to avoid a very large taxable distribution in 2030.
Permalink Submitted by Stuart Cameron on Mon, 2023-08-28 18:24
Thanks Alan