Inheriting an Inherited IRA
Our client inherited an IRA from her mom who passed away at age 86 in 2013. Our client has been taking annual distributions from this IRA every year but it is unlikely that it will be depleted before she passes away. What happens to the inherited IRA when she passes away? Her husband is her primary beneficiary. Will he be subject to the 10 year rule?
Permalink Submitted by Alan - IRA critic on Wed, 2024-09-25 15:32
Yes, he will be the successor beneficiary subject to the 10 year rule. But he also must continue his wife’s RMD schedule for which the divisor drops by 1.0 each year. Therefore, it’s possible that the inherited IRA will be fully distributed prior to the 10 year deadline.