Can someone elect different RMD options for different inherited IRAs?
We have someone who inherited both a Traditional and a Roth IRA from the same decedent. The beneficiary is an EDB (they’re older than the decedent), so they would get life expectancy RMDs on both accounts. Per the tables, this EDB has a ~15 year life expectancy. We thought it might be better to elect 10-year treatment on the Roth – you only get 10 years to empty is rather than 15, but there are no RMDs in years 1-9. We want to keep EDB treatment on the Trad IRA, however. Can we make separate elections on the two IRAs, or no?
Permalink Submitted by Alan - IRA critic on Thu, 2025-03-13 18:21
Yes, the elections may be different for each inherited account.
The beneficiary can opt out of EDB treatment for the Roth IRA because all Roth owners pass prior to RBD. The election should be communicated to the Roth custodian before the end of the year following the year of death and is irrevocable. The 10 year rule will then apply.
For the traditional IRA, the EDB stretch is permitted, and IF the owner passed after RBD the beneficiary can use the longer LE of the owner for RMDs instead of their own. But the owner’s LE cannot be used if the owner passed prior to RBD.