Inherited IRA RMD Questions

Submitted by Jay P. on Thu, 2024-01-25 21:07

Client dies in 2023 at age 96 with an IRA. She took her 2023 RMD prior to her passing. The client’s 3 children are equal beneficiaries. None are EDB’s.
1) What is the deadline for establishing the inherited IRA’s?
2) Dec 31, 2024 is the deadline for taking each beneficiary’s respective first year RMD, correct? All have 10 years to distribute?
3) For the beneficiary RMD calculation, must each beneficiary use their own life expectancy using the single life expectancy table with their ages in 2024?
Thank you.



Submitted by Alan - IRA critic on Thu, 2024-01-25 21:21

  1. Deadline for establishing separate inherited IRAs for RMD purposes is 12/31/2024, but there is no deadline for establishing separate accounts for other reasons.
  2. Correct. 
  3. Yes, assuming that the separate accounts are estabished. There is always a chance that the IRS still cannot finalize the Secure Act Regs by fall, in which case they would again have to waive the penalty for not taking these beneficiary RMDs in 2024.

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