Second-Gen Inherited IRA, first bene was EDB
Hi. Client A passed away in 2022, left his IRA to Client B, not his spouse, who was only six years younger, making her an EDB.
Client B passes away in 2024, leaving the IRA to Client C.
If I am correct, Client C has to “step into the shoes” of Client B’s RMD schedule, using her lifetime divisor…but the question is, since Client B was not required to draw down the account within 10 years, does Client C now have until 2034 to draw down the account? Or do the two years that passed under Client B’s ownership count?
Thank you!!!
Holly Valinotti
Merrill Lynch
Permalink Submitted by Alan - IRA critic on Wed, 2025-02-12 13:30
C has until 2034, as the 10 year rule started in 2024. And the RMD schedule of B must continue as well with divisor reduced by 1.0 each year.