Inherited IRA RMD non qualified beneficiary required distribution calculation

[RLH7715]

My spouse inherited an IRA from her mother split between three siblings.  Her mom died in 2022.  RMDs had begun and we have a 1099R for TY22.   Starting in 2023, we were told we had 10 years to withdraw the money and that we did not need to withdraw every year as long as the entirety was withdrawn the 10th year.  IRS rules have changed?  I am unclear about the impact to us.  Should we have taken a withdrawal in 2023 and 2024?  Or beginning in 2025 we have to start withdrawing each year with the final distribution to occur in the year of the 10 year anniversary of death.   I am unclear which is the case for us.    

@inherited ira 

[dmertz · Accepted solution]

If your spouse's mother died after the mother's required beginning date for RMDs (which is likely to be the case since you said that the mother had already been taking RMDs), your spouse is required to take annual RMDs under the 10-year rule.  However, because this IRS took until 2024 to issue the final regulations regarding this, the IRS has waived the penalties for 2020 through 2024 for failing to take these RMDs, so no RMDs needed to be taken under the 10-year rule for these years.

(In 2022 it was commonly believed that the IRS would interpret the 10-year rule created by the SECURE Act of 2019 as never requiring annual RMDs, but that turned out not to be the case.)