This varies with type of plans, type of recipient, age of recipient, and current revisions.
Currently a beneficiary of an inherited plan has 10 years to withdraw at a regular annual rate for death of owner occurring in 2020 or later.
Qualifying Designated Beneficiaries may take the distributions over their lifetimes starting with the first year after death.
The factors that affect the distribution requirements for inherited retirement plan accounts and IRAs include:
- Whether the account owner died after 2019 (the SECURE Act made changes to the RMDs for beneficiaries if the death of the account holder occurred after 2019).
- The relationship of the beneficiary to the account owner and certain characteristics (spouse, minor child, disabled or chronically ill individual, entity other than an individual)
- Whether the original account owner died before or after their required beginning date (the first date the original account owner was required to begin taking RMDs).
These are complex IF/THEN situations and AccounTax can help you with it. Please contact our office.
