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#2245786 - 11/23/20 07:18 PM Inheriting an Already Inherited Non-Spouse IRA
Jenny Roberts Offline
100 Club
Joined: Feb 2014
Posts: 164
Tennessee
We had a customer pass in 2018. His non-spouse beneficiary put the IRA into an Inherited IRA. She has now passed in 2020. The 2 beneficiaries of the inherited IRA are her grandchildren. Do we go by the 2018 original deceased owner's date for the payout or the first inherited IRA's owner deceased date? Also, what is the best way to set up the title of the inherited IRA for each?

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#2245788 - 11/23/20 07:26 PM Re: Inheriting an Already Inherited Non-Spouse IRA Jenny Roberts
Jenny Roberts Offline
100 Club
Joined: Feb 2014
Posts: 164
Tennessee
I meant to add that the grandchildren are adults

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#2245798 - 11/23/20 09:41 PM Re: Inheriting an Already Inherited Non-Spouse IRA Jenny Roberts
rlcarey Online
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rlcarey
Joined: Jul 2001
Posts: 79,926
Galveston, TX
I thought under the new SECURE Act - they get 10 years to withdraw the entire amount without any required distributions for non-spouse beneficiary IRA accounts.
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The opinions expressed here should not be construed to be those of my employer: PPDocs.com

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#2245822 - 11/24/20 05:08 PM Re: Inheriting an Already Inherited Non-Spouse IRA rlcarey
Jenny Roberts Offline
100 Club
Joined: Feb 2014
Posts: 164
Tennessee
My understanding is that if the owner dies in 2020, they have to use the 10 year payout but if they died prior to 2020, then they can use the old payout. Since this is an inherited IRA, do we use the original owner's date of death or the inheritor's date of death to determine the payout method. It's very confusing...

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#2245828 - 11/24/20 06:38 PM Re: Inheriting an Already Inherited Non-Spouse IRA Jenny Roberts
rlcarey Online
10K Club
rlcarey
Joined: Jul 2001
Posts: 79,926
Galveston, TX
My understanding is that it would be the inheritor's date of death.
_________________________
The opinions expressed here should not be construed to be those of my employer: PPDocs.com

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