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IRA Minor Beneficiary Exception under Secure Act

Answered by: 

Question: 
Can a minor beneficiary have more than 10 years to payout an inherited IRA?
Answer: 

Following the death of an eligible designated beneficiary, the account balance must be distributed within 10 years after the death of the eligible designated beneficiary. (Code Sec. 401(a)(9)(H)(iii), as amended by SECURE Act Sec. 401(a)(2)). A minor is an exception and may use life expectancy with one problem. After a child of the IRA owner reaches the age of majority, the balance in the account must be distributed within 10 years after that date.

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Learn more about Deborah Crawford’s webinar Inherited IRAs and Death Distributions - Including a deeper dive into the SECURE Act

First published on 06/07/2020

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