PRE SECURE ACT – Inheriting an Inherited IRA
Hello,
Working with a new client who owns an inherited IRA (she inherited in 2018) when her husband passed away and he inherited the IRA from his father in 2013. To calculate her RMD, we are using the original account owners DOB and DOD and her husband’s DOB to continue the RMD schedule, is this correct? And not her DOB?
Is she still eligible to stretch the IRA or does she have to deplete the account 10 yrs from receiving it in 2018? Thank you.
Permalink Submitted by Alan - IRA critic on Thu, 2024-11-21 12:29
She must continue the RMD schedule of her husband, reducing his RMD divisors by 1.0 each year. 2020 RMDs were waived. The 2022 divisor should have been reset to reflect the new RMD tables effective in 2022 and beyond.
As a successor beneficiary, her age is not a factor, and the 10 year rule is not a factor because all the deaths were before 2020. Basically, the inherited IRA will last about the number of years shown in the single life table for husband’s attained age in 2014.