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IRS Provides Clarity on Inherited IRA Distribution Rules


Eligible designated beneficiaries (surviving spouse, minor children, chronically ill or disabled, and people no more than 10 years younger than the decedent).

 

If the IRA owner dies before his or her RMD beginning date, then beneficiaries to not have to take RMDs.  They just have to deplete the account in full no later than 10 years from the year of death.

 

If the IRA owner dies after the RMD beginning date, then the beneficiary(ies) must take RMDs, based on their age, and also fully deplete the account no later than 1o years from the year of death.

 

If the IRA owner died in 2020-2023, then the beneficiary(ies) are not required to make up RMDs for those year.

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