Non-Eligible IRA Beneficiaries and the 10 Year Rule

Submitted by Robert Wright on Thu, 2024-02-15 15:38

Can you confirm that Non-Eligible IRA Beneficiaries that are subject to the 10 year rule (they inherit an IRA after the owner has reached their RBD) use the minus 1 method for years 2-9 when calculating their RMD.

For example:

Year 1: LE is based on the age of the beneficiary in year 1 of the 10 year clock (Year 1 = the year after the year of death of the IRA owner)

Year 2: LE = Year 1 LE – 1

Thank you in advance,



Submitted by Alan - IRA critic on Thu, 2024-02-15 15:46

Yes, that’s correct assuming this is the sole beneficiary, or this beneficiary created a separate inherited IRA no later than the end of Year 1. In this situation, the IRS has waived the beneficiary RMDs in 2021-2023 because the Secure Act Regs are still not final.

Submitted by Robert Wright on Thu, 2024-02-15 15:55

Thank you – as always. 

Submitted by Robert Wright on Thu, 2024-02-15 18:41

So, if this is a sole beneficiary, what happens if the beneficiary does not create a separate inherited IRA no later than the end of Year 1? 

Submitted by Alan - IRA critic on Thu, 2024-02-15 19:29

No problem if sole beneficiary, but if there is more than one beneficiary on an inherited IRA after the end of year 1 the age of the oldest of them must be used by all.

Submitted by Robert Wright on Thu, 2024-02-15 20:47

Thanks. Again.

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