Inherited IRAs and Status of the 10-year Rule

[lauradrops]

I'm confused. Are these are proposed "changes to the changes"?

IOW, does any of this affect an IRA that was inherited before 2020?

DW inherited a small IRA from her Mother in 2019. I've taken larger than RMDs, just to drain it down before I have to take my RMDs, just to simplify our situation - one less account to deal with (mostly to simplify for our heirs).

But I want to keep her siblings informed, if it potentially affects them.

-ERD50

I have an inherited IRA from my Dad's passing in 2018, the new rules do not apply to it. It is an RMD based on my age for the length of my life. It should be the same for you if inherited in 2019. The secure act passed in 12/2019 changed these rules and were in effect as of 1/1/2020.

"In 2019, the SECURE Act changed the rules for distributing assets from an inherited IRA. With its passage, most non-spouse beneficiaries who inherited IRA assets on or after Jan. 1, 2020, are required to withdraw the full balance of the account within 10 years."

https://www.unionbank.com/private-b...9, the SECURE Act,the account within 10 years.

 

[marko]

Hi Marko what is your logic for doing that? Not saying it's not the right thing to do, but just curious. Thanks.

He's disabled which apparently further complicates his withdrawal time and amounts. The rules on inherited IRAs seem to be a moving target along with a lot of lack of clarity.

He's also 68 and will soon have his own, much larger RMDs. I'm just moving as much from his inherited IRA as I can to simplify his finances.

He doesn't need the money so it's just a matter of getting it done.

 

[2tswhite]

I have one from my Dad passing last July; we were listed as POD. He was 90, so had been doing RMD's for a while. My brother had no issues doing his share - money is moved, RMD done. But me -������ - I've been working with this bank in TN since August (I live in MA) and still have not received my share. Received an email today stating I had to send them ANOTHER notarized letter explicitly stating: RMD for 2022 is $$ and to send balance to my address. BTW, my brother lives in TN.