Post Secure Act Question
Hello,
I have a client who passed away in 2024 at age 81. The 2024 RMD was satisfied. The account is now in a IRA BDA for the beneficiary who is 79 (non-spouse). Assuming they want to keep the IRA BDA open for 10 years, They will need to take RMD’s in year 1 thru 9 based on their life expectancy but does that get locked in year one and drop by one every year after or will it change every year?
Thank you.
Permalink Submitted by Alan - IRA critic on Mon, 2025-02-10 14:53
The divisor is reduced by 1.0 each year, the method known a non recalculation. Only a sole spousal beneficiary can recalculate their divisor, re entering the single life table each year for a new divisor. Recalculation results in slightly lower RMDs.