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If you inherited an IRA after Dec. 31, 2019, from someone who was already taking required minimum distributions, you'll have to continue taking annual RMDs until you empty the account. The IRS ...
If you inherited an IRA from someone subject to RMDs after Dec. 31, 2019 and you're not a spouse, minor child, or less than 10 years younger than the original owner, you'll also be subject to RMDs.
For example, if you're 75 with a $100,000 IRA balance, you'd divide $100,000 by the 24.6 distribution period for 75-year-olds to get an RMD of $4,065. You can lump all your IRA RMDs together if ...
The Secure Act 2.0 also increased the age at which account holders must begin taking RMDs. Detailed below are the updated rules: Born in 1951 or later: RMDs begin at age 73.
But you can't defer those taxes forever. Eventually, the government wants its tax revenue. That's why it imposes required minimum distributions , or RMDs, on accounts like the 401(k) and IRA.
If you inherited an IRA from someone after Dec. 31, 2019, you may have to take an RMD in 2025. The SECURE Act established a rule requiring beneficiaries (with limited exceptions) who inherit an ...
However, there's a special rule for your first year taking them. You can delay the distribution up until April 1 of the following year. So, 1951 babies have until April 1, 2025 to make their first ...
Knowing these important rules could save you a lot in taxes and fees. 3 New Required Minimum Distribution (RMD) Rules Everyone Must Know Before the End of 2024 Skip to main content