@lennar0719
I found the answer, free of charge.
If the owner dies before their beginning year, the designated beneficiary must take RMDs based on the designated beneficiary's life expectancy.
If the owner dies after their beginning year, the designated beneficiary takes their RMD based on their life expectancy or the owner's life expectancy, whichever is larger.
In addition, of course, the entire account must be withdrawn and closed by the end of the 10th year.
https://frostbrowntodd.com/important-proposed-changes-in-ira-distribution-rules-for-10-year-payout-b...
With respect to the “10-year payout rule,” the 2022 proposed Regulations make one clarification and two significant additions that arguably go beyond the text of the SECURE Act’s changes to Code § 401(a)(9):
- The 10-year payout period ends on December 31 of the tenth calendar year following the year of the employee or account owner’s death [Prop. Reg. § 1.401(a)(9)-5(e)(2)].
- If the account owner or employee died on or after the required beginning date, the Designated Beneficiary must take an annual withdrawal distribution (RMD) during each year of the 10-year period, calculated by using the IRS table and by dividing the account value at the end of the previous year by the life expectancy of the Designated Beneficiary or the life expectancy of the deceased account owner or employee, whichever is the larger number [Prop. Reg. § 1.401(a)(9)-5(d)(1)(ii)].
- If the account owner or employee died before the required beginning date, the Designated Beneficiary must take an annual withdrawal distribution (RMD) during each year of the 10-year period, calculated in the same manner with the IRS table, but by using the Designated Beneficiary’s life expectancy as the divisor or denominator [Prop. Reg. § 1.401(a)(9)-5(d)(2)].
