IRA BDA Post Secure Act Question
Hello, I have a client who is 19 years old and has a minor IRA BDA that he inherited from a 48 year old (non parent) who passed in 2021. What schedule would they have to follow for taking RMD’s an would this have been a different schedule if they received the funds for a parent’s IRA and the deceased was the same age?
Thank you.
Permalink Submitted by Alan - IRA critic on Mon, 2023-10-23 14:50
Yes, these RMDs would differ. In the first case the minor is not an EDB because they are not the child of the decedent. They are subject to the 10 year rule with no annual RMDs because decedent passed prior to RBD. If the beneficiary had instead been the minor child of the decedent, they would be an EDB through age 21, after which the 10 year rule would kick in. That would result in the IRA lasting 2 years longer than in the first situation since the 10 year rule would be delayed by 2 years.