Inherited IRA - Was RMD

[zeros]

Client received inherited IRA from his father who was drawing RMD. My client is 60 years old. He doesn't any any RMD requirements, does he?

[Jesse]

See TTB pg 13-24 -

If Father died on or after RMD beginning date he'll need to take RMD for years after the year of the owner's death on the longer of his life expectancy or Father's life expectancy.

After thought - I believe you need to make sure Father took his RMD in year of death - if not I think the beneficiary needs to take it - closed my book and I have an appointment pulling in so someone correct me if I'm wrong.

[zeros]

Father Was 85

Father had been taking RMD for quite awhile. He passed away and the son received the inherited IRS's. I believe he took an RMD in the year of his death.

[sea-tax]

Your client if he so chooses can either start taking RMD'S over his life expectancy by 12/31 of the year following the dad's death or he has 5years to draw out the balance of the Beneficary IRA. He can take it out rateably over 5 years or take it all out in any one year or take it out on the odd years or even years so long as it is all out by year 5.

Also to go the RMD method he can't retroactively go back in year five and decide to start that option I beleive he has only until 12/31 of the year after death to make this election. If he misses this deadline then he is stuck with the 5year rule, no execptions.

[Gene V]

Your client if he so chooses can either start taking RMD'S over his life expectancy by 12/31 of the year following the dad's death or he has 5years to draw out the balance of the Beneficary IRA. He can take it out rateably over 5 years or take it all out in any one year or take it out on the odd years or even years so long as it is all out by year 5.

Also to go the RMD method he can't retroactively go back in year five and decide to start that option I beleive he has only until 12/31 of the year after death to make this election. If he misses this deadline then he is stuck with the 5year rule, no execptions.

I think you got most of it right, except I don't think he qualifies for the 5 year rules.
see following from TTB 13-24

2) If the benefi ciary is an individual, the beneficiary can elect
to take the entire account balance in the IRA by the end of
the fifth year following the year of the participant’s death. No
distributions need to be made before the end of the fifth year.
This election is only available when the participant dies before
the date RMD begins.

I take it (participant) means the deceased.