Inherited IRA – Disabled Beneficiary
We have a client (59 years old) that will be inheriting an IRA. She has been receiving SSI disability benefits for 15 years. Does this qualify her as an EDB and allow her to take distributions over her lifetime rather than over 10 years?
Permalink Submitted by Alan - IRA critic on Thu, 2025-08-28 17:43
Yes. The final Secure Acts Regs state that receiving SSD (I think you meant SSD, not SSI) is a safe harbor for determination of disability. Therefore, the client will qualify as an EDB and can stretch the inherited IRA over her life expectancy.
Although those Regs do not clarify this, a recipient of SSD is changed to SS retirement benefits at the normal retirement age, which is 67 for this client. I presume that if this client was still getting SSD at 67 and did not inherit the IRA until AFTER that benefit had been changed to the retirement benefit, she would still be treated as disabled and an EDB.
Permalink Submitted by Tracy Hawbaker on Thu, 2025-08-28 17:44
Thank you. Yes, I did mean SSD.