RMD Calculation for multiple beneficiaries

Submitted by Eleonora Tomasello on Mon, 2023-11-06 22:20

Here’s the situation,

Pam Williams passed on 06/30/2022 her IRA was transferred to the Inherited IRAs of her beneficiaries. Each one with their own inherited IRA account on 02/28/2023. Now we are calculating the RMD for 2023 and my thought is each one will use their age to take the minimum and the account needs to be drained by the year 2033.

When do you use the oldest beneficiary age to calculate RMD?

Thank you.



Submitted by Alan - IRA critic on Tue, 2023-11-07 00:06

  • The age of the oldest beneficiary only applies to beneficiaries who have not established separate inherited IRA accounts by the deadline of 12/31 of the year following the year of death. If Pam’s beneficiary is the usual 10 year rule beneficiary the inherited IRA must be drained by the end of 2032, not 2033. Further, if Pam passed after her RBD, annual beneficiary RMDs are required in years 1-9 (2023-2031) but the IRS has waived the 2023 beneficiary RMD for such 10 year rule beneficiaries.  
  • If any beneficiary is an EDB, for example due to being not more than 10 years younger than Pam, the 10 year rule does not apply, but annual beneficiary RMDs are due for 2023 and subsequent years. Further, if Pam passed after her RBD and did not complete her 2022 owner’s RMD, the beneficiaries were jointly responsible for doing so by the 2022 tax due date. 

Submitted by Randy Boyle on Tue, 2023-11-07 15:05

My mother died in 2023 and never took her 2023 RMD, and the funds have already been delivered to each. Do all (4 in this case) dependents (all 63-70) need to  take the RMD for 2023 or could one of us do it.  One account is an annuity that will be disbursed to all 4 and one is an account at a credit union that is only inherited by me.  I thought I would take all of the RMD for 2023 out of it before sharing with my 3 siblings. Do I do the RMD for 2023 on my Mother’s taxes or mine (if I can take all of the RMD myself).

Submitted by Alan - IRA critic on Tue, 2023-11-07 15:28

“Non designated” means that individuals were not named as beneficiaries, and a charity, estate, or trust inherited these accounts. The CU IRA appears to have you named as beneficiary, and if so only you can complete the year of death RMD for that IRA. Please clarify the beneficiary listing on the other accounts and confirm that the annuity is in an IRA.

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