Inherited IRA Question

[Anonymous]

I inherited an IRA this year (non-spouse). The deceased was already taking RMDs but had not yet taken it in 2022. Am I required to take it this year?

[Anonymous]

You need not continue the RMD’s but you must completely deplete the IRA by the end of year 10 following the original owner’s death.

[Anonymous]

Umm. I have an inherited IRA and I’m not depleting it. and i am taking a distribution every year.

Clearly PP had different information than i do.

I’d say you DO need to take your RMD ASAP and that there’s no requirement to deplete beyond that b

[Anonymous]

Anonymous wrote:Umm. I have an inherited IRA and I’m not depleting it. and i am taking a distribution every year.

Clearly PP had different information than i do.

I’d say you DO need to take your RMD ASAP and that there’s no requirement to deplete beyond that b

The rules changed and RMDs are different depending on when you acquired it. Op is under the new rules - but I don’t know the specific answer to the question about 2022

[Anonymous]

Anonymous wrote:Umm. I have an inherited IRA and I’m not depleting it. and i am taking a distribution every year.

Clearly PP had different information than i do.

I’d say you DO need to take your RMD ASAP and that there’s no requirement to deplete beyond that b

Umm. Learn the tax code or refrain from offering tax advice. Why would you offer advice (and with such confidence) when you clearly lack basic knowledge?

The law changed on inherited IRAs in 2019. Here's all the rules from the IRS. https://www.irs.gov/publications/p590b

[Anonymous]

The deceased was already taking RMDs but had not yet taken it in 2022. Am I required to take it this year?

Yes, you take your portion of the deceased's final RMD if it was not yet taken in 2022. So if your Mom's RMD was 40k, and you inherited half and a sibling inherited half, each of you take a 20k RMD and apply your own withholding. The financial institution where your parent held their account should be able to tell you your portion of the RMD.

Next year you will have BOTH a small RMD based on life expectancy factor AND you are subject to the new 10 year window to fully deplete the IRA. See the 9/30 guidance from the IRS for post SECURE Act Inherited IRAs.

[Anonymous]

Yes you must take it this year and you have to withdraw the entire amount within 10 years.

[Anonymous]

I also inherited an IRA this year. My dad had not taken his RMD yet. Since he was alive this year, it is my understanding that my dad was still required to take his RMD. So, that is what I did. I am not an accountant. I worked with his financial advisor, they have experts in IRAs and distribution requirements, but again not an accountant. So, I could be wrong. However, I did not have to take an RMD this year. This is all semantics. Since he has passed, and I will get his RMD. But it is the RMD that was based on his age and account value of the IRA from 12/31/21 when he was alive, not my age.

[Anonymous]

As a beneficiary of an IRA, I (as well as my siblings) contacted the bank and they had a form for me to complete. My options were to take a lump sum, a few installments or X amount each year. This form will also ask you to choose a % for federal taxes to be taken out. So, my advice is to contact the institution that holds the IRA.

[Anonymous]

My understanding is that you must deplete in 10 years but that you aren't required to take RMD every year.

[Anonymous]

Anonymous wrote:Yes you must take it this year and you have to withdraw the entire amount within 10 years.

This is the correct answer.