Wife inherited husband’s beneficiary IRA he inherited from his mother
Lady has a bene IRA inherited from her husband whose death was in 2022. Husband himself inherited the IRA from his mother in 2018 when she died. Husband was taking these beneficiary IRA RMDs while he was alive. Husband inherited his mother’s IRA in 2018 when she died. The wife of course is now required to take RMDs from this beneficiary IRA and did so starting in 2023. How are RMDs accurately calculated? Under the 5 or 10 year rules, or Secure Act 2.0?
Permalink Submitted by Alan - IRA critic on Mon, 2024-10-21 20:05
The wife is a successor beneficiary of her husband and must continue his RMD schedule in years 1-9 of the 10 year rule (2023-2031) and drain the balance by the end of 2032. That said, the IRS has waived the 2023 and 2024 beneficiary RMDs due to their delay in finalizing the Secure Act Regs. She must determine her beneficiary RMDs for 2025 and beyond by resetting the divisors to reflect the new RMD tables for 2022 and beyond. To do that she must determine what husband’s divisor would have been based on his attained age in 2019 using the new tables, then subtract 6.0 from that divisor for her 2025 beneficiary RMD as her RMDs must resume next year. She continues to reduce the divisor by 1.0 for each year after 2025 until 2032 when the inherited IRA must be drained. To be clear, HER age as the successor beneficiary is immaterial.
She was also responsible for completing husband’s year of death RMD for 2022 if husband did not do so.