@kevermurray - the language you posted is consistent with what we have all been repeating.....
for designated beneficiaries (to keep it simple - anyone who inherits the IRA other than the spouse) have to liquidate the IRA in 10 years. That is rule #1.
But there is a 2nd rule regarding RMDs:
if the Owner died before RMDs were required, then there is no RMD requirement of the beneficiary. Just liqudate it by the 10th year is the only requirement..
"10-year rule. The 10-year rule requires the IRA beneficiaries who are not taking life expectancy payments to withdraw the entire balance of the IRA by December 31 of the year containing the 10th anniversary of the owner’s death. For example, if the owner died in 2022, the beneficiary would have to fully distribute the IRA by December 31, 2032. The beneficiary is allowed, but not required, to take distributions prior to that date
if the Owner died AFTER RMDs were required, then not only must the IRA be liqudated in 10 years, there is an ongoing RMD requirement during those 10 years!
The example on the bottom of page 10 says the brother is 73, so he was subject to RMD, so the brother who inherited the IRA is also subject to RMD.
if the example was the brother was 71 (and not subject to RMD), the the brother who interited the IRA would still need to liquidate the IRA in 10 years, but have no RMD requirement along the way
is that the nuance that is throwing you?????? Owner's age at time of death and whether he was already subject to RMDs or not????
