In its simplest form, this year’s RMD is based on the value of the IRA at the end of last year and the life expectancy of the owner. However, figuring out the RMD of inherited IRAs is significantly more complex. The bereaved must face the loss of the grantor again every year, ...
Although the timing and amount of RMDs will likely change, assets inherited in an IRA will receive the same tax treatment when passed to aspouse,child, or relative,though non-spouse beneficiaries can no longer ‘stretch’ the distributions over their lifetime by taking required minimum distribution...
The discussion that follows (as well as the link to the calculator) illustrates the procedure for calculating Required Minimum Distributions (RMDs) for an IRA, 401k, or other qualified retirement plan that you own. Inherited IRAs and other accounts follow a different procedure which we’ll cover ...