Eligible Designated Beneficiaries (EDB) Inherited IRA

ATan — Wed, 03 Dec 2025 04:03:05 GMT

Greetings,

I just inherited an IRA after my dad's passing. I do have a VA form 21-0172 that states I am permanently and totally disabled. I called vanguard to notify them that I qualify for being an Eligible Designated Beneficiary (EDB) and to calculate a lifetime stretch RMD instead of a 10-year cleanout. They told me to use the website calculator and figure out how much RMD I need and withdraw that amount and then notify my tax accountant.

The question I have is, how do I file taxes so the IRS knows I am an EDB and not get penalized 10 years down the road for not doing the 10-year IRA clean-out under the new SECURE Act? How does the IRS know I am a designated beneficiary and not the latter if I'm calculating my own RMDs?

Re: Eligible Designated Beneficiaries (EDB) Inherited IRA

jtax — Mon, 29 Dec 2025 16:18:02 GMT

Hello @ATan. I am very sorry for your loss.

There is no way that I can find to tell the IRS that you are an EDB.

You just take out the proper RMD based on your status. If the IRS ever asks or audits you, that is the time you would provide your evidence.

topic Eligible Designated Beneficiaries (EDB) Inherited IRA in Tax law changes

Eligible Designated Beneficiaries (EDB) Inherited IRA

Re: Eligible Designated Beneficiaries (EDB) Inherited IRA