Hi @Pickles4
Thank you so much for joining us today, we are so happy you are here!
Congratulations on retiring and I am so sorry to hear about your mom's passing.
With your inherited Ira, here are you options.....
Non-spouse beneficiary options
In 2020 and later, options for a beneficiary who is not the spouse of the deceased account owner depend on whether they are an "eligible designated beneficiary." An eligible designated beneficiary is
- Spouse or minor child of the deceased account holder
- Disabled or chronically ill individual
- Individual who is not more than 10 years younger than the IRA owner or plan participant
An eligible designated beneficiary may
- Take distributions over the longer of their own life expectancy and the employee's remaining life expectancy, or
- Follow the 10-year rule (if the account owner died before that owner's required beginning date)
Designated beneficiary (not an eligible designated beneficiary)
Beneficiary that is not an individual
- Follow the rules described above as if the account owner died before 2020 (because the SECURE Act changes only apply to beneficiaries who are individuals)
Definitions
5-year rule: If a beneficiary is subject to the 5-year rule,
- They must empty account by the end of the 5th year following the year of the account holders' death
- 2020 does not count when determining the 5 years
- No withdrawals are required before the end of that 5th year
10-year rule: If a beneficiary is subject to the 10-year rule,
- Empty the entire account by the end of the 10th year following the year of the account owner's (or eligible designated beneficiary's) death
- Relief under Notice 2022-53 for beneficiaries subject to the 10-year rule
I hope this is helpful and let me know if you have any other questions.
Cheer's,
Holly W
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