Bsch4477 is correct. By operation of law, an IRA becomes maintained for the benefit of the beneficiaries immediately upon the death of the IRA participant, so with the death occurring in 2023 the financial institution is required to provide the beneficiaries with the year-end value of at least the value of the particular beneficiary's respective share of the inherited IRA. If separate accounts for each of the beneficiaries were established by the end of 2023, the financial institution is required to have issued a 2023 Form 5498 to each beneficiary showing the year-end value of their particular inherited IRA account. (The financial institution is also required to have issued a 2023 Form 1099-R to the decedent showing the date-of-death value, but this requirement is rarely satisfied.)
Even if separate accounts were not established by the end of 2023, the financial institution is still required to provide the beneficiaries with the 2023 year-end value since at that point the IRA is being maintained for the benefit of those beneficiaries (even if the financial institution has not yet been informed of the death).
To allow each beneficiary to use their own age for the determination of RMDs, the deadline to establish separate inherited IRA accounts in this case is December 31, 2024.
This answer has been verified for accuracy by an Intuit expert employee
