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casey4220
Level 2

Neither deceased IRA owner nor inheritor received 1099-R, we assumed 2021 would be first RMD year. What are choices for non spouse inheritor on withdrawal %, etc. ?under new non spousal

 
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dmertz
Level 15

Neither deceased IRA owner nor inheritor received 1099-R, we assumed 2021 would be first RMD year. What are choices for non spouse inheritor on withdrawal %, etc. ?under new non spousal

Neither.  A non-spouse designated beneficiary who is 2 years older than the decedent is an EDB and is subject to annual distributions based on the life expectancy of the beneficiary from the Single-Life Table, not to the 10-year rule and not the life expectancy of the decedent.

View solution in original post

8 Replies
fanfare
Level 15

Neither deceased IRA owner nor inheritor received 1099-R, we assumed 2021 would be first RMD year. What are choices for non spouse inheritor on withdrawal %, etc. ?under new non spousal

the beneficiary's first RMD is taken in the year after the year of death of the decedent.

The decedent's RMD in the year of death, if any, has to be taken.

 

2020 is voided because of the COVID .

casey4220
Level 2

Neither deceased IRA owner nor inheritor received 1099-R, we assumed 2021 would be first RMD year. What are choices for non spouse inheritor on withdrawal %, etc. ?under new non spousal

So there is no paperwork or notation on the either the deceased's final 2020 return or the beneficiary's 2020 return about waiving the RMD because of the COVID virus?

fanfare
Level 15

Neither deceased IRA owner nor inheritor received 1099-R, we assumed 2021 would be first RMD year. What are choices for non spouse inheritor on withdrawal %, etc. ?under new non spousal

that's right.

 

Correction.

 

For new beneficiaries (after 2019 )

there is no requirement to take an RMD.

the only requirement is that before the tenth year expires you take all the money out.

 To spread the tax impact you should take out

yearend value x 1 / (10-n), where n is the number of yearly RMDs gone by.

dmertz
Level 15

Neither deceased IRA owner nor inheritor received 1099-R, we assumed 2021 would be first RMD year. What are choices for non spouse inheritor on withdrawal %, etc. ?under new non spousal

The 10-year rule applies only to non-spouse beneficiaries who are not Eligible Designated Beneficiaries, such as a designated beneficiary who is not more than 10 years younger than the decedent.  Eligible Designated Beneficiaries have annual RMDs based on the life expectancy of the beneficiary.

fanfare
Level 15

Neither deceased IRA owner nor inheritor received 1099-R, we assumed 2021 would be first RMD year. What are choices for non spouse inheritor on withdrawal %, etc. ?under new non spousal

@dmertz 

too many negatives for this late at night.

Is a nephew who is 40 years younger than me an Eligible beneficiary, or a Non-eligible beneficiary?

dmertz
Level 15

Neither deceased IRA owner nor inheritor received 1099-R, we assumed 2021 would be first RMD year. What are choices for non spouse inheritor on withdrawal %, etc. ?under new non spousal

fanfare, no.  Someone 40 years younger is more than 10 years younger and is not an EDB unless they qualify for another reason such as being disabled, chronically ill or temporarily while they are a minor.

casey4220
Level 2

Neither deceased IRA owner nor inheritor received 1099-R, we assumed 2021 would be first RMD year. What are choices for non spouse inheritor on withdrawal %, etc. ?under new non spousal

So a non spouse beneficiary who is 2 years older than the deceased has the ten year rule available? Or must base RMD on deceased's age table draw down?

dmertz
Level 15

Neither deceased IRA owner nor inheritor received 1099-R, we assumed 2021 would be first RMD year. What are choices for non spouse inheritor on withdrawal %, etc. ?under new non spousal

Neither.  A non-spouse designated beneficiary who is 2 years older than the decedent is an EDB and is subject to annual distributions based on the life expectancy of the beneficiary from the Single-Life Table, not to the 10-year rule and not the life expectancy of the decedent.

View solution in original post

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