Trust IRA Beneficiary Oldest Beneficiary Passed
We have clients that are beneficiaries of an IRA that is owned inside a trust. The original IRA owner DOB 8/10/21 DOD 1/22/01. It was not split into separate accounts thus the RMD calculations have been based on the beneficiary with shortest life expectancy. That beneficiary just passed, will the RMD calculation get updated to use the next shortest life expectancy or is it permanently based on the oldest from the original inheritance into trust?
Permalink Submitted by Alan - IRA critic on Tue, 2025-01-07 14:11
The divisor does not change due to beneficiary’s death, so the current divisor will continue to be reduced by 1.0 each year. The only change was that the divisor should have been reset to the new 2022 RMD table in 2022, and that would have resulted in a slightly lower RMD, roughly 5-6% lower.