Calculation of 2025 RMD for Non-EDB Beneficiary
If TIRA owner died in 2020 after RBD, non-EDB rolled to inherited IRA in 2021 and has not taken any distributions how will they calculate 2025 RMD?
Perhaps beneficiary’s SLE in 2021 reduced by 1.0 for each of the intervening years?
And will entire account have to be distributed by 12/31/2030?
Thanks
Permalink Submitted by Alan - IRA critic on Thu, 2024-07-25 12:45
The single life table divisor must be reset to what the initial divisor would have been in 2021 if the 2022 RMD tables existed then. That divisor is then reduced by 1.0 for each year thereafter (total reduction 4.0) to determine the 2025 divisor. And the inherited IRA must also be drained by the end of 2030. Since there will be only 6 years left after 2024, the beneficiary may want to consider taking larger distributions, including a distribution this year to prevent a tax spike from the total remaining balance in 2030.