@mjc4maureen
Since all of your proposed beneficiaries are “non-qualified“ under the new rules contained in the SECURE act, they simply have to follow the 10 year rule. They must withdraw all the money in the account within 10 years; there are no other withdrawal requirements even if you have already started your RMD yourself.
An “eligible” beneficiary is your spouse, your minor child, a disabled individual, or any other person who is less than 10 years younger than you. All of your proposed beneficiaries, including your adult children and your minor grandchildren, will be nonqualified beneficiaries. That means they follow the 10 year rule regardless of whether or not you have started your RMD‘s.
You are correct that if you pass away and you have not already taken a withdrawal for that year that satisfies the RMD rule, your heir or executor must take an RMD for you before the remainder of the account balance is distributed to the beneficiaries. Since the withdrawal would occur after the date of your death, the income would be taxable on an estate tax return rather than your final personal tax return.
[Edited to correct] If your RMD for the year you die is taken after your death, it is distributed directly to the beneficiaries and they pay the income tax.
An inherited IRA must always remain in a designated inherited IRA. Your beneficiaries could do a rollover to a different account custodian (bank or investment company) but it would still be marked as an inherited IRA and subject to the 10 year rule.
