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Level 2
posted Mar 19, 2025 9:17:23 AM

Inherited IRA

I inherited an IRA from a parent who was born in 1932.  I know I need to deplete the entire IRA within 10 years but is an annual RMD required?  I did take money out last year.  When entering the IRA info into TurboTax is asks if an RMD is required and I was not sure if its required or not.  

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1 Replies
Expert Alumni
Mar 19, 2025 9:26:13 AM

It depends. It must be emptied by the 10th year and the chart in the link below will give a more detailed answer based on your specific circumstances.

Non-spouse beneficiary options

In 2020 and later, options for a beneficiary who is not the spouse of the deceased account owner depend on whether they are an "eligible designated beneficiary." An eligible designated beneficiary is

  • Spouse or minor child of the deceased account holder
  • Disabled or chronically ill individual
  • Individual who is not more than 10 years younger than the IRA owner or plan participant

An eligible designated beneficiary may

  • Take distributions over the longer of their own life expectancy and the employee's remaining life expectancy, or
  • Follow the 10-year rule (if the account owner died before that owner's required beginning date)

10-year rule: If a beneficiary is subject to the 10-year rule,

  • Empty the entire account by the end of the 10th year following the year of the account owner's (or eligible designated beneficiary's) death
  • Relief under Notice 2022-53 for beneficiaries subject to the 10-year rule
    • The IRS will not treat a beneficiary of an inherited account in a plan or IRA who was subject to the 10-year rule and who failed to take an RMD for 2021 and 2022 as having failed to take the correct RMD