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If you inherit an IRA or 401(k) and fail to take the RMD for the year of the account owner’s death, a 50% tax penalty applies. There’s an exception if the estate is named as the beneficiary of ...
It was unclear as written whether someone inheriting an IRA subject to the 10-year rule must also take RMDs in years one through nine. The IRS waived the requirements for 2021 through 2024 but ...
The RMD rules are designed to spread out the distributions of one's entire interest in an IRA or plan account over one's life expectancy or the joint life expectancy of the individual and his or her beneficiaries. The purpose of the RMD rules is to ensure that people do not accumulate retirement accounts, defer taxation, and leave these ...
Because Secure 1.0 creates a thicket of rules and classifications to wade through, the IRS decided to waive missed RMD penalties for inherited IRAs from 2020 through 2024.
They can treat the inherited IRA as their own, or take distributions based on their life expectancy. These new rules do not apply to accounts inherited before 2020, or to Roth IRAs. This story was ...
2. Those who inherited IRAs since 2020 can avoid taking RMDs in 2024. If you inherit an IRA, you may be subject to RMDs. Under the SECURE 2.0 Act of 2022, if you inherit an IRA from someone who's ...
The IRS waived the RMD requirement for 2020 through 2024. The IRS recently decided that it will start enforcing RMDs on inherited IRAs beginning in 2025, and annual distributions must continue in ...
But if you’ve inherited a traditional tax-deferred IRA, withdrawals will be taxed as ordinary income. So if you make $65,000 a year, withdrawing $35,000 from an inherited traditional IRA would ...