Whose Life Expectancy
For a Noneligible Designated Beneficiary, where the owner died after the RBD, the beneficiary is subject to the 10-year Distribution rule with annual RMD requirements. The RMDs in the 1st 9 years is based on life expectancy. Is that the life expectancy of the beneficiary?
Thanks!
Permalink Submitted by Alan - IRA critic on Thu, 2024-05-09 18:21
Yes, if the beneficiary is subject to the 10 year rule, the age of the beneficiary would be used to determine the annual beneficiary RMDs in years 1-9 of the 10 year period.
The separate account rules apply, therefore if a multiple beneficiary inherited IRA is not split into separate inherited IRAs by the end of the year following the year of death, the age of the oldest beneficiary would determine the divisors for all beneficiaries who failed to establish separate inherited IRAs by the deadline.
It is expected that 2024 will be the last year that the IRS waives the annual RMD for 10 year rule beneficiaries.