Inherited IRA RMDs
I’m working on updating my clients Inherited RMD amount that is needed to be taken for 2024. I noticed that the RMD calculators out there figure the RMD amount by dividing the # of years left to withdraw.
Example:
2023 YE Value: 18,377.11
Owner DOB: 7/12/1937
Owner DOD: 11/24/2022
Designated Bene DOB: 7/23/1965
My RMD calculation for 2024 is $658.68. If I plug the above information in an Inherited RMD calculator, the RMD that is calculated for 2024 is $2297 which is the YE value divided by 8, the # of years remaining to withdraw the funds.
I know nothing is set in stone at this point on whether or not beneficiaries need to withdraw funds or make annual withdrawals. My question is….if client has to take annual withdrawals, is it based on the # of years remaining or a life expectance factor?
Permalink Submitted by David Mertz on Mon, 2024-01-22 21:32
Your calculation is correct, $658.68. Dividing by 8 makes no sense since, including 2024, there are 9 years remaining to take distributions under the 10-year rule, with final distribution by 12/31/2032.