Personal Finance (Not Investing) • Inherited inherited IRA RMD: Is my understanding (and math) correct?

To be clear, even though you are subject to the 10 year rule, as a successor beneficiary you must also continue his RMD schedule in 2025 and beyond.

Thank you for your answer, and for correcting my incorrect calculation of the longevity factor.

But are you sure your comment above is accurate after Secure Act?

For instance, in the kitces article cited in a different comment, it says

Notably, under the pre-SECURE Act rules, a Successor Beneficiary of a ‘Stretch Beneficiary’ would continue taking ‘stretch’ distributions using the original beneficiary’s remaining Single Life Expectancy. Thus, if the original beneficiary of a retirement account lived long enough, or inherited the account at an advanced (enough) age, the Successor Beneficiary could have been left with fewer than 10 years to distribute the remaining assets. But now, thanks to the SECURE Act, such beneficiaries will benefit from the 10-Year Rule.

See their example 6 for a case in point.

The proposed regulations provided a similar requirement to continue annual distributions for 10 years if an eligible designated beneficiary who was taking life expectancy payments dies or if an eligible designated beneficiary who is a minor child of the employee and who was taking life expectancy payments reaches the age of majority. Commenters raised similar concerns regarding this requirement. For the reasons described in the preceding paragraph, these regulations retain this requirement for continued annual distributions for up to 10 years after: (1) the death of an eligible designated beneficiary who was taking life expectancy payments; or (2) the attainment of the age of majority (in the case of an eligible designated beneficiary who was a minor child of the employee taking life expectancy payments).

Statistics: Posted by Alan S. — Fri Oct 11, 2024 11:39 pm — Replies 9 — Views 559