Succcessor Beneficiary- Follow up Question
I have a few follow up questions:
Wasn’t the requirement to take RMDs from inherited IRAs waived for 2024? If so, is A, as a successor beneficiary, required to take the 2024 RMD that P’s spouse didn’t take for the second IRA?
If there were 2 successor beneficiaries for this IRA (50% each), could either one take that 2024 RMD if it is required?
Also for the second IRA whose owner died in 2016, if the previous beneficiary and successor beneficiary took incorrect amounts as RMDs, that has no impact on A, the new successor beneficiary–is that correct?
For that same IRA, if the RMDs should have begun in 2017, in that case 2026 would be the 10th year after the original owner’s death. Therefore, does A need to take the correct RMD in 2025 (based on the same schedule as the distributions would have been if they began in 2017) and withdraw the rest of the account in 2026 OR does A begin a new 10 year period in 2025 with RMDs based on P’s (single life table for age 60) life expectancy of 27.1 years for the 2025 RMD? Thank you
Permalink Submitted by Alan - IRA critic on Tue, 2025-09-16 16:37
For inherited IRA #2, the successor beneficiaries of P’s spouse must complete the 2024 beneficiary RMD of P’s spouse and can do so in any combination between them. This beneficiary RMD was not waived because it was not a 10 year rule RMD. The 2024 beneficiary RMD was a stretch RMD due to the prior death in 2019 being pre Secure Act.
Q 2 – A (and any other successor beneficiary) is only responsible for the 2024 year of death RMD, not for any other pre 2024 RMD shortfalls that might have occurred. The 10 year rule starts in 2025 and ends in 2034. It does not relate in any way to 2016. The 2024 year of death divisor is 27.1 less 7.0 = 20.1 and 1.0 is deducted for each year thereafter making the 2025 divisor 19.1., etc.. The IRA must be drained by the end of 2034.