Inherited IRA… is there an RMD due for the Beneficiary?
Scenario: Client who had not reached RMD age passed in 2025 (would not have reached RMD age at any point in 2025). Her beneficiaries were set up as Spouse (50% Primary), and 2 siblings (25% Primary each). Spouse rolled his portion into his own IRA, while the siblings took their portions in the form of an Inherited IRA. Both siblings are considered Eligible Designated Beneficiaries (one is older than the decedent, the other is less than 10 years younger than the decedent).
Do the siblings have an RMD this year? If they do, how would we calculate it given how the original IRA was split amongst multiple owners in different percentages?
Permalink Submitted by Alan - IRA critic on Mon, 2025-09-29 13:22
There is no RMD due in 2025, but beneficiary RMDs begin in 2026 as both beneficiaries are EDBs who can stretch the inherited IRA over their own single life expectancy. The 10 year rule does not apply.
But if either beneficiary preferred the 10 year rule to EDB treatment, they could opt out and into the 10 year rule. There will no annual RMDs, just a total distribution by the end of year 10. While this is choice is generally not beneficial, in a unique situation it may be. This option is only available if the owner passed prior to RBD, as is the case here.