I am planning ahead. Say I am age 75 and RMD is happening every year. Then I died suddenly in 2022. My beneficiaries are my daughter and her three minor children who equally inherited my traditional IRA and Roth IRA.
How much do they must withdraw/distribute for RMD first year (i.e. 2022) and the subsequent 9 years? Who determines the amount? How much is enough for the first year? For my grandkids, I believe it is more than 9 years they must withdraw/distribute all of IRA funds but I don't know how long of extension they have. If you can shed the light for all these, that would be so awesome.
Also do they need to create a separate account called "Inherited IRA" under their name from my original IRA account? The taxable RMD they must withdraw will put into some sort of investment account outside of their inherited IRA, correct?
Thank you,
Maureen
