Inherited IRA Rules
What are the options for an individual concerning the new Inherited IRA Rules.
Facts:
Deceased individual:
Date of death 11/23/20 (62 years of age)
Non spouse beneficiary Date of birth 3/15/59 ( 61 years of age at time of deceased spouses’ death)
Permalink Submitted by Alan - IRA critic on Tue, 2024-11-19 18:56
Beneficiary is an EDB(not more than 10 years younger) that should have been taking annual RMDs starting in 2021 based on their single life table age in 2021. The other option was to opt out of EDB treatment and into the 10 year rule, but the deadline for doing that was the end of 2021.
If the beneficiary did not take these RMDs, they should determine what each one was, and make up the late RMDs and file Form 5329 for each year to request that the penalty be waived. There is still time to complete the 2024 RMD and avoid filing a 2024 5329.