New Regs

Submitted by Robert Roselli on Mon, 2024-07-22 15:32

Great article about the final ruling. So to summarize, if the decedent died in 2020, 2021, 2022, 2023, or 2024, there are no mandatory RMD this year, but next year there will be an RMD and we calculate it the same way we did for Inherited IRAs pre-Secure act? The entire account must be emptied by 12/31 10 years after the decedant dies. Lastly, for decedents starting this year as long as they satisfied their RMD before passing away, their beneficiaries have minimum RMDs for years 1-9 with everything coming out in year 10?



Submitted by Alan - IRA critic on Mon, 2024-07-22 16:05

Yes, that’s correct assuming that the 10 year rule applies to the beneficiary AND the decedent passed on or after their RBD.

Submitted by Alan - IRA critic on Mon, 2024-07-22 18:11

You are correct. “At least as rapidly” refers to the method used by the decedent, not necessarily the same dollar amount. the same age, or the same RMD table. A younger beneficiary would use their own age for RMDs, but an older beneficiary would continue to use the age of the decedent (aka ghost LE).

And you are correct regarding a Roth IRA. Since the decedent had no RMDs, neither does the beneficiary when the 10 year rule applies but must drain the account by year 10.

The concept all applies to successor beneficiaries to the original designated beneficiary.  If the designated beneficiary was taking annual RMDs, these must continue for the successor beneficiary.

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