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Inherited IRAs and SIMPLE IRA Creditor Protection: Today's Slott Report Mailbag

Thursday, May 25, 2023
Question: In 2021, my wife inherited an IRA from her sister who was 4 years younger. My wife therefore is an EDB (eligible designated beneficiary). Her sister was 66 years old at date of death. My wife has been taking RMDs based on her own age. What happens when my wife dies? Do all the following beneficiaries have 10 years to deplete the inherited IRA? Are there RMDs that need to be taken each year for those beneficiaries? If so, is the RMD based on the factor that my wife was using?
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INHERITED IRA 10-YEAR RULE AND DISABLED CHILD AS ELIGIBLE DESIGNATED BENEFICIARY: TODAY’S SLOTT REPORT

Thursday, March 09, 2023
Question: Hello, I have an inherited IRA which falls under the 10-year rule. I understand that the IRS has tried to clear up the 10-year RMD (required minimum distribution) confusion but I am still not sure which RMD Table I am supposed to use! I am a non-spouse (daughter of the deceased) and it's confusing. Will I need to make up the RMDs for the first two years when the rules were not clearly stated? Thank you,
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EDBs Have a Choice: Stretch vs. 10-Year

Monday, February 20, 2023
By now, most are aware the SECURE Act created a new class of beneficiaries called “eligible designated beneficiaries” (EDBs). This group includes surviving spouses, minor children of the account owner (until age 21), disabled individuals, chronically ill individuals, and people who are not more than 10 years younger than the IRA owner. (Those older than the IRA owner also qualify.)
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INHERITED ROTH IRA BENEFICIARY RULES AND PAYOUT OPTIONS FOR ELIGIBLE DESIGNATED BENEFICIARIES: TODAY’S SLOTT REPORT MAILBAG

Thursday, December 15, 2022
Question: Do adult children who inherited a parent’s Roth IRA in 2020 need to take an RMD each year during the 10-year payout rule or may they leave it alone and deplete the account at the end of the 10th year? I’ve heard it both ways and would like to know which is correct. Thank you. Pam
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IRS Waives 50% Penalty for Missed 2021 and 2022 RMDs Within the 10-Year Period

Monday, October 10, 2022
Last Friday (October 7, 2022), the IRS waived the 50% penalty on missed 2021 and 2022 inherited retirement account RMDs for beneficiaries subject to the SECURE Act 10-year payout period. The guidance was in IRS Notice 2022-53.
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Roth Conversions and Designated Beneficiaries: Today's Slott Report Mailbag

Thursday, September 01, 2022
Question: Hi Mr Slott, I read somewhere but couldn't remember where, if a person needs to withdraw an RMD but doesn't need the money, can he convert this RMD to a Roth IRA? Thanks in advance
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60-Day Rollovers and Eligible Designated Beneficiaries: Today's Slott Report Mailbag

Thursday, August 25, 2022
QUESTION: I have a client where we did a 60-day rollover this past January. The proceeds were put back into the account in less than 60 days. The client has asked me to rollover the 403(b) plan he’s had sitting with his former employer. Is this a second rollover violating the once-per-year rollover rule?
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Eligible Designated Beneficiaries and RMD Aggregation: Today's Slott Report Mailbag

Thursday, August 18, 2022
Question: Hi, My wife (68) inherited a traditional IRA and a Roth from her sister (71) in 2021. Both accounts have been moved to inherited IRAs. I’m trying to do some tax planning. Can you please confirm the following from my confusing research?
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SECURE Act Regulations Are Here

Monday, February 28, 2022
On February 23, 2022, the IRS released the long-awaited proposed SECURE Act regulations. The new regulations clock in at 275 pages and offer guidance on many SECURE Act rules. They also include a few surprises. Here are some highlights.
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Can EDBs Split Inherited IRAs?

Monday, July 12, 2021
A surviving spouse has a number of options regarding how to deal with IRAs inherited from his or her deceased spouse. The age of both the deceased and surviving spouse will most often dictate the decision as to how to proceed. Typically, a surviving spouse who is age 59 ½ or older will do a spousal rollover with the assets. A spousal rollover allows the surviving spouse to consolidate the inherited IRA into her own, thereby minimizing future paperwork and confusion. She will have full and unfettered access to the assets (other than potential taxes due).
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