Inherited IRA –
Our client died in 2024 and took his 2024 RMD. His daughter inherited his IRA but not claim the account until 2025. Is the 2025 RMD based on original client as if he were still alive? or do I calculate based on the beneficiary? Noting that if based on the original owner, the RMD would be higher versus on the beneficiary. Thank you.
Permalink Submitted by Alan - IRA critic on Fri, 2025-02-07 17:22
The 2025 RMD is based on the age of the daughter in 2025 and the single life table. The 10 year rule also applies and the inherited IRA will have to be drained by 2034.
Permalink Submitted by Pattie Gradl on Fri, 2025-02-07 17:27
Thank you.
Permalink Submitted by Alan - IRA critic on Fri, 2025-02-07 17:50
The 2025 beneficiary RMD is based on daughter’s attained age in 2025 and the single life RMD table. The 10 year rule will also require that the inherited IRA is drained in 2034.
Note that the RMD requirements are not affected by delays in the beneficiary having the account retitled.