Successor Beneficiary
T-IRA owner dies in 2021 after his RBD
Older sister, EDB sole beneficiary
Sister dies in 2024, with her brother inheriting as Successor Beneficiary
Sister (older beneficiary) subject to “stretch” RMDs (starting in 2022) based on the owner’s (now deceased) life expectancy? We are using the owner’s life expectancy because he was younger than his sister.
Sister, dies in 2024, her brother (successor beneficiary), he continues using his sister’s (original beneficiary) life expectancy and subject to the 10-year rule and subject to RMDs in years 1-9?
Kindly confirm that my assessment is correct
Thank you in advance
Permalink Submitted by Alan - IRA critic on Tue, 2025-06-24 11:32
Since a successor beneficiary “steps into” the shoes of the designated EDB beneficiary except that the 10 year rule will also apply, the successor should be able to continue using the decedent’s (original owner) LE in years 1-9 as sister would have done.