"She was taking yearly RMDs from her IRA, but I don't have to (except for the year of her death) as long as the account is zeroed out in 10 years."
@sandy4042
Don't be too relieved because you are wrong.
IRS has just clarified that yearly RMDs are required on newly inherited IRAs under the 10-year rule if the decedent died after their required beginning date for RMDs.
IRS will enforce this rule with the 2023 tax year and beyond.
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still you must liquidate within 10 years.
when you are subject to the 10-year liquidation rule for newly inherited IRAs,
to spread the tax impact most evenly over the ten years,
your divisor should be : 10 - N where N is the number of entire anniversary years gone by.
In other words, with four years gone by, you want to take out one sixth of the IRA in the fifth anniversary year.
If you are a young beneficiary, or even not so young, this rule would generate much larger RMD than the RMD based on Pub590B formulas.
