Bene IRA 10 yr. Rule RMD Required if Owner Passed After RMD’s started
Hello. Did the Bene. IRA 10 year rule get modified for those IRA beneficiaries of deceased owners who passed after their RMD’s started?
Does the Beneficiary have to take a RMD?
When does the requirement start for them?
Thanks, Julie
Permalink Submitted by Alan - IRA critic on Tue, 2025-09-23 17:26
If the beneficiary is not an EDB, the 10 year rule will apply and the final Secure Act Regs made it clear that annual RMDs in years 1-9 are required when the IRA owner passed after RBD. But because of the delay in finalizing these Regs, the IRS waived such annual beneficiary RMDs for 2021-2024. But they are required starting in 2025.
Permalink Submitted by Julie Brangenberg on Thu, 2025-09-25 11:39
Thank You! If the Owner passed in 2025, do the beneficiaries have to satisfy the remainder of the owner’s RMD, and start their Bene. RMD in 2026?
Permalink Submitted by Alan - IRA critic on Thu, 2025-09-25 18:57
A beneficiary is always responsible to complete the owner’s RMD for the year, but only for the year of death, not prior years. If the owner did not complete the 2025 RMD, the deadline for the beneficiary to complete that RMD is now 12/31/2026. But the beneficiary’s own RMDs also start in 2026, so it would probably be more tax efficient for the beneficiary to complete the owner’s 2025 RMD in 2025.
Tax reporting does not distinguish between the amounts that were the owner’s RMD from those that are the beneficiary’s RMD. It’s up to the IRS to figure it out whether a particular distribution represents the owner’s RMD or the beneficiary RMD. Neither one of these RMDs can be distributed until the beneficiary establishes an inherited IRA showing the name of the beneficiary and the decedent.