Inherited IRA opened in 2019, first RMD in 2020
3 Children inherited Dad’s IRA and created 3 separate Inherited IRA accounts in 2019. Dad’s RMD came out so the kids’ 1st RMDs start this year in 2020. Can they “Stretch” or do they need to liquidate in 10 Years?
Permalink Submitted by Alan - IRA critic on Tue, 2020-01-07 18:04
Since Dad passed in 2019, the children are not subject to the Secure Act elimination of the stretch. They can each take Life Expectancy RMDs based on their own ages, thereby still benefiting from the stretch. Once the children pass, their beneficiaries will have 10 years to distribute the remainder of the inherited IRA.