Bene IRA’s
Can you please confirm that non-eligible designated bene’s have to take an annual RMD from an inherited IRA under the Secure Act during the 10 year distribution period? But only if the deceased was already taking RMD’s correct?
Can you please confirm that non-eligible designated bene’s have to take an annual RMD from an inherited IRA under the Secure Act during the 10 year distribution period? But only if the deceased was already taking RMD’s correct?
Permalink Submitted by Alan - IRA critic on Tue, 2024-01-16 19:59
Yes, correct. More specifically, only if the owner passed on or after their RBD.
Permalink Submitted by Justin Chibucos on Fri, 2024-01-26 12:36
Thank you for your reply. So if the owner has passed before their RBD, no RMD’s are required during the 10 year period correct? If the owner passed away on or after their RBD, what table is used for the RMD’s over the 10 year period?
Permalink Submitted by Alan - IRA critic on Fri, 2024-01-26 15:07
Yes, no annual RMDs if owner passed prior to RBD. If the owner passed on or after RBD, annual RMDs are required in years 1-9 of the 10 year rule. The single life table is used with the beneficiary age in the year after owner’s death, and that divisor is reduced by 1.0 for each succeeding year. This assume the beneficiary is not an EDB.