With an Inherited IRA, you may either need to take annual distributions no matter what age you are when you open the account or may be required to fully distribute the assets in the account within a specified number of years, or in some cases a combination of both. These rules don't apply if you've simply transferred another IRA to your own IRA but are specific to Inherited IRAs.
This guidance is also for situations where the IRA account holder died after 2022, and therefore, the rules under the SECURE Act and SECURE 2.0 Act apply. You can also review additional information in our Inherited IRA Brochure (SECURE Act compliant).
If the account holder died before 2020, and therefore is not subject to the changes in the SECURE Act, you can learn about distributions options in our Inherited IRA Brochure that covers scenarios prior to the SECURE Act, here.
Please also note that the below options are for individuals that are specifically named as the beneficiary on the decedent’s IRA account. If you are named as the beneficiary in an estate, you should consult your estate or financial planner.
Thank you,
Hi There:
The 10 year rule to empty an inherited IRA account is still in effect. Any proposed changes to the rule are not yet law and are expected to come out in 2024.
My partner passed away unexpectedly in July 2020. I was his sole beneficiary on his IRA. Those funds were transferred into an inherited IRA in my name. Can I take distributions from this account over my lifetime? If so, how do I determine my RMD?
Many thanks!