IRA beneficiary - Required Minimum Distributions

Forum|Forum|3 years ago
November 23, 2022
2 replies
28 views

I'm looking for clarity around surprisingly dynamic IRA rules. I inherited a traditional IRA in 2020 from my dad who was 89. Following the Secure Act, it is my understanding that I have 10 years to withdraw all of these taxable funds. I'm trying to verify that I can take the distributions at my convenience as opposed to annual RMDs. But I have seen some information that suggests that because my dad was already taking RMD's from this account that I may be required to take RMBs as well. Can somebody verify my RMD requirement or point me to documentation that specifies the current rules? Thanks in advance.

Best answer by dmertz

Your RMD for a particular year is the previous year's year-end balance divided by the life-expectancy factor for the particular year. Your life-expectancy factor for the particular year is the factor from the Single Life Expectancy Table (https://www.irs.gov/publications/p590b#en_US_2021_publink100089977) for your age attained in 2021 reduced by 1 for each subsequent year. For example, if you attained age 64 in 2021, the factor for 2022 would be 23.7 - 1 = 22.7.

Anonymous_

Level 15

@shydig wrote:

....I have seen some information that suggests that because my dad was already taking RMD's from this account that I may be required to take RMBs as well.

Based upon the facts you stated, you will be required to take RMDs beginning in 2023.

Read the answer by @dmertz in the thread below.

Solved: Successor beneficiary of an inherited IRA - what are the distribution rules? (intuit.com)

fanfare

Level 15

You may be required because the IRS is proposing rules to that effect, which is different from the current IRS Publication 590 B.

Probably the proposed rule will become official.

@shydig

fanfare

Level 15

The thread mentioned is overly complicated -dynamic- because the beneficiary (that would be you) died.

You're not dead yet, I see.

@shydig

shydigAuthor

Level 3

Thanks for all of the responses. Thanks for understanding my confusion. The rules and timing aren't very clear for us folks that aren't tax professionals. Your messages help me feel that I am currently compliant and penalty-free.

So I have a follow on question. I took no distribution in 2020 (the year of dad's death). In 2021 I took a distribution of about 13% of the account total at that time. I believe I have 9 more years for distributions. I plan on taking a distribution for 2022. How do I calculate my minimum required annual distributions? I've seen some free calculators online but none accommodate an inherited IRA on the 10-year plan.

Thanks in advance again for any insights you can provide.