Inherited Inherited IRA
Mother passed away in 2016 and left an IRA to her son. He passed away in 2022 and the IRA beneficiary is his older sister.
What is the RMD schedule for the Sister? Is it the 10 years based on the Mother’s (original owner) death? Or based on the beneficiary’s death?
Financial Institution is saying that it needs to be liquidated which doesn’t make sense.
Thanks
Permalink Submitted by Alan - IRA critic on Fri, 2024-02-16 14:30
If mother passed after her RBD, the successor beneficiary will have to continue the RMD schedule of her brother and also drain the inherited IRA by 2032. If mother passed prior to her RBD, the older sister must still drain the inherited IRA by 2032 but is not required to take annual RMDs before 2032. Financial institution may have their own rules, but more likely do not understand the proposed IRS Secure Act Regs.
Permalink Submitted by Rene Perrin on Sat, 2024-02-17 12:57
Original IRA owner was 89 years old and died in 2016. She left the IRA to her son who was 54 at that time.The son died in 2022 at age 60. I do not think he had taken any distributions. His beneficiary is his older sister – 65 years old.What is the distribution requirement for the older sister? Thanks so much for your reply Alan!