With some new rules starting in 2024 with spousal beneficiaries, I updated my quick sheet. Would the below be correct starting Jan 1, 2024? The only thought I had was whether spouses can elect the 10yr rule if they want to.

Inheriting a Traditional or Roth IRA

General Beneficiary Rules
-Beneficiaries of an IRA may be subject to RMD rules
—- There is no maximum amount the Bene can withdraw as long as the full RMD amount is taken
—- Beneficiaries are able to withdraw from the Beneficiary IRA with no penalty, regardless of age
—- Traditional IRA distributions are typically taxed as ordinary income (to the extent above basis)
—- While the inheritance options are the same for Roth IRAs as Traditional IRAs, they do not have RMDs in most cases. This means most beneficiaries will not have an annual distribution required, unless a spouse keeps the funds as an Inherited Roth IRA.
—- Be aware of the 5-year rule when distributing from a Roth IRA. If a beneficiary takes a distribution from an inherited Roth IRA that wasn’t held for five tax years, then the earnings may be subject to tax.

Spousal Beneficiaries
-Rollover the funds into their own Traditional IRA
• Must be done within 60 days of distribution
• Cannot roll over any portion of the distribution that constitutes an RMD
• Subject to rollover rules
• Would be subject to a 10% penalty for early withdrawal
• Subject to RMDs once the surviving spouse turns RMD age
-Treat themselves as a beneficiary
• Provides relief to spouses under 59 ½, as there is no penalty to withdrawal funds.
• Three distribution options:
——– Delay RMD until the deceased spouse would have turned RMD age.
——– Take distributions based on their own life expectancy by using the IRS Single Life Expectancy Table
——– Follow the 10-year rule

Designated Beneficiaries (most non-spousal beneficiaries)
-Year of death RMD must be taken out of the beneficiary IRA(s)
• If multiple beneficiaries, it is not required to be pro-rata by all the beneficiaries, just in aggregate the entire RMD must be taken.
-If the beneficiary is NOT an eligible designated beneficiary, then the 10-year rule must be followed. This means the beneficiary must empty the entire account by the end of the 10th year following the year of the account owner’s death.
• During this period, there may be annual RMD requirements.

Non-designated beneficiary (generally inherited via a will or estate)
-5-year Rule
• Under the 5-year rule the bene must withdraw the entire interest from the IRA by December 31 of the year containing the 5th anniversary of the decedent’s death.
• The bene is generally free to withdraw any amount before the 5-year date or withdraw it all in the 5th year