Inherited ROTH IRA, timeline
Child inherits Roth IRA. Year of death was 2019. There are no RMD’s, but know the ROTH IRA Dad owner was age 75. One child wants to stretch. What is timeline? Year of death? Or year after death? (They passed in December 2019) Thanks.
Permalink Submitted by Alan - IRA critic on Fri, 2020-01-17 15:36
Child qualifies for the full life expectancy stretch. The first beneficiary RMD will be due for 2020 and is calculated using Table I to get the divisor. Child beneficiary uses the age they will be on 12/31/2020. For divisors in years after 2020, the prior year divisor is reduced by 1.0. However, new tables are expected for 2021 and beyond which reduce RMDs somewhat, and child will have to reset their divisor for 2021 to get the benefit of the new tables. To be clear, there was no RMD due for 2019 from owner or beneficiary.