My sister died in September 2018. She was 68 years old and died before the required beginning date for taking her IRA RMDs. Her IRA funds (Traditional and Roth) were just recently assigned out of the estate to the estate beneficiaries (2023).
I understand how the 5 year rule applies as she died in 2018.
But reading this topic on the IRS website:
https://www.irs.gov/retirement-plans/plan-participant-employee/retirement-topics-beneficiary
"Death of the account holder occurred before 2020"
...
"Non-spouse beneficiary options
If the account holder's death occurred prior to the required beginning date (or if the account is a Roth IRA), the non-spouse beneficiary's options are:
- Take distributions based on their own life expectancy, beginning the end of the year following the year of death, or
- Follow the 5-year rule"
What does the "Take distributions ...... year of death, or" mean? Is there another choice on taking distributions in addition to the 5 year rule?
Thanks for the help! These IRA rules make my head explode! 😊
