Estate as IRA Beneficiary and Secure Act
I haven’t been able to find any information on the following question pertaining to the SECURE Act. If an IRA has an Estate named as 100% primary beneficiary and IRA owner passes prior to RMD age. Is the new stretch time period 10 year or 5 years?? Since an IRA naming an Estate as beneficiary had to be paid out within 5 years don’t know if this rule still exists or has it been extended to 10 years??
Permalink Submitted by Alan - IRA critic on Wed, 2020-01-29 03:56
Secure did not change the RMD rules for non individual (non designated) beneficiaries. Therefore, the 5 year rule will still apply in this case, or when a non qualified trust or charity is the beneficiary as well. For deaths after the RBD, the remaining life expectancy of the decedent remains the applicable distribution period.