Required Minimum Distributions (RMDs)
 

Inherited IRAs and Retirement Plans

Your RMDs from your IRA or plan will cease after your death, but your beneficiary(ies) will have to take RMDs eventually. How much they are required to take and when they are required to them depend on whether they are eligible designated beneficiaries (EDBs) and whether you die before or after you began your own RMDs.

Generally speaking, EDBs may spread RMDs over their own life expectancy, while non-EDBs are typically required to liquidate the account within 10 years. A spouse who is the sole beneficiary may generally roll over an inherited IRA or plan account into an IRA in the spouse's own name or treat the account as his or her own, allowing the spouse to delay taking additional RMDs until he or she reaches RMD age.

As with required lifetime distributions, proper planning for required post-death distributions is essential. You should consult an estate planning attorney and/or a tax professional.

Note:  The SECURE and SECURE 2.0 Acts dramatically changed the RMD rules for IRA assets inherited by most non-spouse beneficiaries. A financial or estate-planning professional can help you determine how the new rules may affect your estate-planning strategies.

IMPORTANT DISCLOSURES Broadridge Investor Communication Solutions, Inc. does not provide investment, tax, legal, or retirement advice or recommendations. The information presented here is not specific to any individual's personal circumstances. To the extent that this material concerns tax matters, it is not intended or written to be used, and cannot be used, by a taxpayer for the purpose of avoiding penalties that may be imposed by law. Each taxpayer should seek independent advice from a tax professional based on his or her individual circumstances. These materials are provided for general information and educational purposes based upon publicly available information from sources believed to be reliable — we cannot assure the accuracy or completeness of these materials. The information in these materials may change at any time and without notice.
Prepared by Broadridge Investor Communication Solutions, Inc. Copyright 2024.