Inheriting an Inherited IRA
My client inherited a Beneficiary IRA from his wife, who inherited it from her late father in 2018. Based on the new SECURE ruling, it is my understanding that he will transfer the assets to his own inherited IRA, continue with his late wife’s RMDs and liquidate the account in 10 years. Is this correct, or does he take RMD’s based on his own life expectancy?
Permalink Submitted by Alan - IRA critic on Thu, 2024-05-30 19:13
You are correct. His own age is immaterial as a successor beneficiary. It is possible that his wife’s RMD schedule would drain the account prior to 10 years, but if not he must drain it in the 10th year.