I've been reading through threads and linked articles explaining Secure 2.0 distributions from Inherited IRAs.
Here are the details that I'd like to confirm.
"Bob" passed in Nov 2023 at the age of 77 and his triplet sister "Suzie" inherited his Traditional IRA. Since Suzie is younger by an hour or so, she is an "Eligible Designated Beneficiary" and can stretch distributions. Suzie will use the single life expectancy table (table I) in IRA pub 590B to calculate RMDs. For example, this year she is 78 and will use 1/12.6 to calculate the RMD.
"Bob" had an inherited IRA from the other triplet brother "Bill". Suzie inherited this IRA making it doubly inherited. I believe EDB status doesn't exist here, so this IRA is subject to the ten year rule. This IRA must be depleted by 2033.
The IRS is waiving RMDs and penalties this year, so Suzie doesn't have to take the RMDs this year. This may or may not be a good idea. Either way, the double inherited IRA would need to be completely depleted by 2033.
Do I have this right?
Here are the details that I'd like to confirm.
"Bob" passed in Nov 2023 at the age of 77 and his triplet sister "Suzie" inherited his Traditional IRA. Since Suzie is younger by an hour or so, she is an "Eligible Designated Beneficiary" and can stretch distributions. Suzie will use the single life expectancy table (table I) in IRA pub 590B to calculate RMDs. For example, this year she is 78 and will use 1/12.6 to calculate the RMD.
"Bob" had an inherited IRA from the other triplet brother "Bill". Suzie inherited this IRA making it doubly inherited. I believe EDB status doesn't exist here, so this IRA is subject to the ten year rule. This IRA must be depleted by 2033.
The IRS is waiving RMDs and penalties this year, so Suzie doesn't have to take the RMDs this year. This may or may not be a good idea. Either way, the double inherited IRA would need to be completely depleted by 2033.
Do I have this right?
Statistics: Posted by alpenglow — Mon Sep 30, 2024 6:37 pm — Replies 3 — Views 193