Confused on your inherited IRA forgiveness
Keep in mind that the new IRS Notice does not affect lifetime RMDs, RMDs from inherited IRAs by “eligible designated beneficiaries,” or RMDs by beneficiaries who inherited before 2020. It only applies to those beneficiaries with annual RMDs within the 10-year period.
RMDs from inherited IRAs by “eligible designated beneficiaries: This is the only inherited IRA’s that we have are ones that had a designated beny.
Example: 80 yr old who was taking an RMD passes in Dec of 2023 with designated benies. So, the designated benies still have to take their RMD’s this year based on their lifetime chart since they were designated, correct?
Thank you
Douglas
Permalink Submitted by Alan - IRA critic on Mon, 2024-05-06 15:20
For those beneficiaries who are not EDBs and therefore under the 10 year rule, the 2024 inherited IRA RMD has been waived by the IRS in Notice 2024-35. However, the IRS indicates that such beneficiary RMDs will not be waived after 2024.
However, if the decedent did not complete the 2023 RMD before passing, the beneficiaries are responsible for doing so, in any combination between them.