@kevermurray
<<Note the last sentence just above, beginning with the word 'regardless'. How do you interpret that as having to do yearly RMDs? Or to emphasize, should I have more than one ?????????>>
That paragraph is solely discussing who is subject to the 10 year rule and NOT who is subject to RMD.
let's try to break it down.
"The 10-year rule applies if (1) the beneficiary is an eligible designated beneficiary who elects the 10-year rule, if the owner died before reaching his or her required beginning date; or (2) the beneficiary is a designated beneficiary who is not an eligible designated beneficiary, regardless of whether the owner died before reaching his or her required beginning date. "
Here is the definition of an Eligible Designated Beneficiary (EDB):
The owner’s surviving spouse
The owner’s child who is less than 18 years of age
A disabled individual
A chronically ill individual
Any other individual who is not more than 10 years younger than the deceased IRA owner
A designated beneficiary is an individual (let's not worry about estate and trusts!) named as a beneficiary on a retirement account and who does not fall into one of five categories of individuals classified as an eligible designated beneficiary (EDB).
You are a "designated beneficiary" as you do not satisfy any of the requirements of an "eligible designated beneficiary"
Under (1), those that are in one of the 5 categories of "eligible designated beneficaries" have the OPTION to liquidate in 10 years but not the requirement if the Owner died prior to taking their first RMD.
Under (2), every other individual (the "designated beneficiaries") MUST liquidate in 10 years. And it doesn't matter whether the Owner (your mother) had begun taking RMDs or not.
does it make sense now? please post back
