Inherited IRA – Eligible Designated Beneficiary
Daughter (Eligible Designated Beneficiary) receives Father’s IRA.
If she was not and EDB she would be obligated to take RMD’s based on her life expectancy?
Since she is an EDB, she can elect to take as much/little out each year as long as she exhausts the account balance within 10-year anniversary?
What changed in 2025? Is the above the same is the daughter received in 2024 vs 2025?
Thank you!
Permalink Submitted by Alan - IRA critic on Tue, 2025-05-06 17:14
A child that is not a minor would only be an EDB if they are disabled or chronically ill. But if she is an EDB she would have annual RMDs but would not be subject to the 10 year rule.
If she is NOT an EDB, then the 10 year rule will apply with annual RMDs, but if father passed prior to RBD the 10 year rule applies without annual RMDs.
The only change in 2025 is that if the 10 year rule applies and father passed after RBD, the annual RMDs are not waived any longer. There is no change for EDBs.
In any of these situations, the beneficiary can take out more than the RMD, just not less.