Are You a Successor Beneficiary? Crossing the Line Between Old and New RMD Rules

If you inherited an IRA within the last few years, there are new beneficiary rules that you need to be aware of, thanks to SECURE Acts 1.0 and 2.0.

Column distributed by Hearst Connecticut Media Group.

Links to resources referenced:

• IRS Publication 590-B: Distributions from Individual Retirement Arrangements (IRAs) -- For use in preparing 2018 Returns
  • https://www.irs.gov/pub/irs-prior/p590b--2018.pdf 
  • Related column excerpt:
    • “Take a reader I’ll call Tom, who in 2018 at age 56 inherited his mom’s IRA when she passed away at the age of 89. Her year-of-death RMD (required minimum distribution) was $16,667 based on her 12/31/2017 IRA value of $200,000 and her divisor of 12.0 (Uniform Lifetime Table III).”
• IRS Publication 590-B: Distributions from Individual Retirement Arrangements (IRAs) -- For use in preparing 2023 Returns
  • https://www.irs.gov/pub/irs-pdf/p590b.pdf
  • Related column excerpt:
    • “Those ‘special rules,’ as detailed in IRS Publication 590-B, include treating the deceased spouse’s IRA as your own by designating yourself as the account owner or by rolling it over into your IRA.”
• Wolters Kluwer Expert Insights Tax & Accounting
  • https://www.wolterskluwer.com/en/expert-insights/tax-and-accounting
  • Related column excerpt:
    • “As you can see, RMD answers depend on the precise set of circumstances. You’ll need expert tax advice that applies to your situation. Wolters Kluwer’s expert insights are subscription-based. See its website for more details.