Inherited inherited IRA

[JohnP3]

My wife's mother died in 2011 at 86 years old - my wife was 56 at the time - and left my wife an IRA as a beneficiary. We have been taking the RMD each year since.  My wife passed away this past October at 65 and I have inherited that IRA from her.  I am currently 71.  Since the original IRA was inherited by my wife prior to the SECURE Act as a non spouse and I inherited it post SECURE act as a Spouse, what will be my RDM requirements going forward?   (I understand the 2020 RMD has been waived by the CARES Act.)   Also, how does turbo tax address this type of situation.

[dmertz]

You are considered a successor beneficiary to someone who died in 2020 or later.  This means that the 10-year rule created by the SECURE Act applies to you.  No distributions are required to be made from this IRA until 2030 when any amounts that remain must be distributed to you (or to your beneficiaries if you should die before the account is fully drained) by the end of 2030.

In TurboTax, you'll indicate that any distribution you take is all RMD (since this question is really asking how much is not eligible for rollover and none of a distribution from this IRA is eligible for rollover) and that you have completed all of your RMDs with respect to this account even if you took none from this account (in 2030 you'll need to make sure that you've satisfied the RMD by distributing anything that remains).

[fanfare]

You should consider continuing the yearly distributions in amounts of about  ( 1/n) x value, where n is the number of years till 2030 . This will spread your taxes over 10 years

But, that's up to you.

Congress had their eye on the Stretch IRA for some time and finally went ahead with another way of  confiscating your wealth.

[JohnP3]

Thank you for this response.