Hello Experts! I inherited two IRAs, a Roth and a traditional IRA. I am the sole beneficiary and those accounts moved by the custodian to my account earlier in 2022. We both had the same financial institution. I have been doing much research on how to handle proper distributions, correct deadlines, and the reporting for tax purposes. Some background: these IRAs are non-spousal. We were unmarried partners.
Following is what I gathered from the IRS and I'd like to know if I'm on the right track.
1) I'm considered an "eligible designated beneficiary" (EDB), other than a spouse, and an individual not more than 10 years younger than IRA owner. In this case can I treat the Trad IRA as my own and begin RMDs at 72?
2) I was advised to withdraw the Roth IRA first, as distributions are considered qualified and generally tax-free. Is this your understanding?
3) If there are RMDs, custodian must report amount or offer to calculate RMD before Jan 31 of the year RMD is required. Is this correct?
I think those are some of the areas I covered, that I didn't completely understand. I appreciate your expertise so that I can follow the tax codes without triggering an event. Thank you.
