RMD continuation options
If a client has $1 million in an IRA and he dies at age 75, he has one son, does the son have to continue RMDs for the 10-year term or can the son hold off until the 10th year to take the withdrawal? What option’s does the son have?
Thank you
Permalink Submitted by Alan - IRA critic on Tue, 2020-09-08 23:30
For deaths after 2019. the Secure Act applies. If the son does not qualify as an eligible designated beneficiary (eg disabled), the 10 year rule applies, and no annual RMDs are required. However, the son would probably want to develop a plan for periodic distributions to avoid a single large distribution later on that would spike his tax rate.