With all the variations out there now, wanted to double check how to calculate the Rmd’s for the new owner.
Older brother, original IRA owner – date of birth 6/1/1960 date of death 5/15/20 Age 59
Younger brother beneficiary – date of birth 6/6/1964 (less than 10 years younger)
Appreciate your help.
If the younger brother wants to do RMD’s want to clarify
As I remember things, the rmds for 2021 2022 & 2023 were waived. would this mean, we start out with rmd for 2024 based on year end 2023 balance and use the factor you mention in the answer. Not sure where the catch-up would come in.
The RMDs for an EDB have not been waived by the IRS. The waiver only applies to 10 year rule beneficiaries. He may be able to opt out of EDB treatment and into the 10 year rule, and that would erase the 2021-2024 RMDs, but he would then have to drain the account by 2030 instead of 26 years from now.
Permalink Submitted by Alan - IRA critic on Fri, 2024-11-08 18:09
Younger brother is an EDB, and RMDs are based his age 57 in 2021. 2021 divisor was 27.9 (old table). 2022-2024 divisors using the new 2022 table are 28.8, 27.8 and 26.8.
He also had the option to opt out of EDB treatment and into the 10 year rule, in which case there are no annual RMDs, but the account must be drained by the end of 2030. Most likely the IRA agreement will not default him into the 10 year rule if he did not take the annual RMDs. But if he did not, he needs to make up the shortfall and file Form 5329 for each year he was short to request the penalty be waived.