Successor Beneficiary Non-Eligible Designated Beneficiary Pre Secure Act
Original IRA Owner = died in 2019
Non-Spouse Beneficiary IRA Owner = died in 2020
How is the 10-year rule applied to the Successor Non-Spouse Beneficiary? Are annual RMDs required in addition to liquidating the account by Dec 31, 10th year anniversary (12/31/2029)?
Permalink Submitted by Alan - IRA critic on Wed, 2023-10-18 20:25
The successor beneficiary must drain the inherited IRA by the end of 2030 per the 10 year rule. If the original owner passed after their RBD then the successor beneficiary must continue the RMD schedule used by the designated beneficiary which includes resetting the divisors for 2022 and beyond due to new RMD tables effective in 2022. If original owner passed prior to RBD, then there are no annual RMDs required from 2021-2029.