IRA distribution question
A 30 year old client inherited a traditional IRA from her mother in 2022. Mom was 56 years old and died in 2022. Does the client have to start her distributions from the account in 2022 or 2023? Also, what year would the final distribution need to be taken in? Thanks, George
Permalink Submitted by David Mertz on Tue, 2022-10-04 19:13
Because her mother died before her required beginning date for RMDs, the 10-year rule applies with no annual RMDs. The inherited IRA just needs to be fully drained by the end of 2032. However, unless the amount in the inherited IRA is small, it probably makes sense to take distributions over the 10 years anyway to avoid having to realize a large amount of income from this inherited IRA in 2032.