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Inheriting an Inherited IRA

January 18, 2017 • Anonymous • Log In to Post Comments

A Client has just inherited an IRA from his brother who passed away.  His Brother was the sole beneficiary of an IRA from his father who had passed away years ago.

Would the RMD be calculated over 5 years or over the number the years his brother was taking?




I believe if you have the IRA transferred to you as a beneficiary you can use your life expectancy.

 I found the following with respect to inherting an inherited IRA

Daughter (successor beneficiary) must complete the distribution pattern used by the son. If son elected the 5 year rule, daughter must drain the account by the end of son's 5 year period. If son was using life expectancy RMDs, the daughter must continue his schedule by using the divisor that applied to son in the year of sons death and continuing to reduce that divisor by 1.0 for each year thereafter. The inherited IRA should be titled showing only the daughter's name as beneficiary and the son's name as decedent. Mom's name would no longer be included on the account.

Thank you Steve.


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