EDB and RMD

Submitted by Krista McBeath on Mon, 2023-12-11 18:24

I have a client who was 70 years old in 2021 when she inherited and IRA from her deceased son, age 47. She has taken enough the past several years that we have not had to worry about specific rules, but I know and really thinking about this. He had not reached his RBD and neither had she at his death. Using Table 1, her divisor would have been 18 in 2022 and my understanding is we would reduce that by 1, but if she is alive at age 90, and if there is a balance, this account must be fully disbursed at that time.

Since wasn’t a spouse and had not reached her RBD- I don’t think she could use the LE method- well not the Uniform Table.
Could she use Table 1- but NOT reduce by 1?



Submitted by Alan - IRA critic on Mon, 2023-12-11 18:55

  • As an EDB Table I applies and the correct divisor for 2022 was 18.0 and subject to the annual 1.0 reduction thereafter, making the 2023 divisor 17.0. She cannot become the owner or ever use the Uniform Table, nor can she avoid the 1.0 annual divisor reductions because only a sole surviving spouse beneficiary is eligible for that. 
  • Up to 12/31/2022, because the owner passed prior to RBD, she did have an option to elect out of EDB treatment and into the 10 year rule. While that would have eliminated any annual beneficiary RMDs, such an election would have been unwise since it would have required the inherited IRA to be drained in 2031 and eliminated a longer stretch of the inherited IRA balance. But a few beneficiaries might find this option  useful (eg in very poor health with a desire to leave more to a successor beneficiary).

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