Inherited IRA -answer updated
Hi Terry,
My mother past away at age 90 on Halloween of 2021. I inherited 1/3 of her traditional IRA. I know that I will need to take all of the IRA by year ten but have received conflicting opinions on whether I need to continue with her yearly RMD’s going forward. Can you please advise?
Thank you,
Terry Says
YES, if she had already started RMDs, you must continue taking them. The custodian will help you calculate.
And if your family inherited the other 2/3 of this account, let them know they must also take RMDs. The interesting question is whether each of you must take 1/3 of the total RMD — or whether each of the presumably 3 new inherited IRA accounts must take the FULL RMD?! I will look into that and add to this post.
UPDATE 9/27: According to IRA expert Ed Slott, in addition to the RMD taken in year of death, EACH of you must now start taking RMD’s every year from years 109 — based on YOUR OWN LIFE EXPECTANCIES! If there is anything left, it must be removed from the IRA in year 10.
And yes, these are all taxable withdrawals.
There is hope they will “fix” this complexity if Congress gets around to agreeing on legislation this year or early next year.
