Do I need to take RMDs from an Inherited IRA?

[QuestionsTT]

I was a beneficiary on my mother's IRA.  She was taking yearly RMDs. 

I'm trying to understand if I need to take RMDs as well (I'm 54 years old), or if I just need to liquidate the inherited IRA within 10 years.  

Thanks!

[JamesG1]

You must take an RMD each year.

You also must withdraw all the funds from your inherited IRA within 10 years.

See this TurboTax Best Answer.

[AmyC]

I am going to assume this is a Post-2019 Death - The SECURE Act of 2019 changed the rules for many non-spousal beneficiaries. Most must withdraw all assets from the Inherited IRA within 10 years of the original account holder's death. There are no annual RMDs during this period, but the entire balance must be distributed by the end of the 10th year.

If you are a disabled individual, you would be an exception to the rule and would take RMD over your life expectancy.

I am very sorry for the loss of your mother.

[QuestionsTT]

@AmyC ... Yes - the death was in March 2024 and post-2019.  I am not disabled. 

Reading some other resources, it sounds like IRS may have recently clarified that RMDs may be necessary?  I'm probably fine for 2024, since the rules only take effect in 2025?

New Inherited IRA Tax Rules Every Beneficiary Should Know | Kiplinger
"Update: IRS final regulations on inherited IRAs confirm that beginning in 2025, many beneficiaries will face annual required distributions during the 10 years."
...
"For many heirs, the IRS now requires annual withdrawals throughout the 10 years. (The RMD amount each year can vary based on several factors, including the beneficiary's age, relationship to the deceased, and the value of the inherited account.)"

"For example, rules differ depending on whether the original account owner, before they passed away, had begun taking RMDs. If they took required distributions before they died, the beneficiary usually needs to continue taking annual distributions while complying with the 10-year rule (if applicable)."

[KrisD15]

Yes, the rules for non-spousal inherited IRA accounts have changed. The 10 year rule still applies, but previously the account needed to be depleted in that time, and RMD was not mandatory. Now the account still needs to be depleted in the 10 year period, however yearly RMD's may also be required. 

Implementing these changes has been delayed, so there is no penalty for no RMD made by the beneficiary in 2024. 

Since your mother was taking RMD, her RMD would be what you will need to take yearly in the next 10 years, unless you deplete the account sooner.

You may also receive a 1099-R for the inherited account if a distribution was made and paid to you for her 2024 RMD.

@QuestionsTT 

[RobertB4444]

If your mother started taking RMDs before her death then you must continue taking her RMDs starting in 2025 and still withdraw everything in the account by year 10.  If your mother did not take her first RMD before she passed then you can still wait until year 10 to withdraw all of the money but it has to be done within that 10 year framework just as @AmyC pointed out.

@QuestionsTT 

[QuestionsTT]

Thanks @KrisD15  and @RobertB4444 

I guess I'm questioning whether I use "my age" or "my mother's age if she were still alive" when calculating the RMD amount.  

I found a couple "Inherited IRA RMD Calculators":

• Inherited IRA RMD Calculator | Vanguard
• Inherited IRA RMD Calculator: Optimize Withdrawals | Charles Schwab

And they both seem to use my age.  

Thanks

[DianeW777]

You will use your age: 

• Beneficiary is younger than the owner: The beneficiary's age is used for RMDs. 

@QuestionsTT