![]() Follow the 10-year rule (if the account owner died before that owner's required beginning date)ĭesignated beneficiary (not an eligible designated beneficiary).Take distributions over the longer of their own life expectancy and the employee's remaining life expectancy, or.Individual who is not more than 10 years younger than the IRA owner or plan participant.Spouse or minor child of the deceased account holder.In 2020 and later, options for a beneficiary who is not the spouse of the deceased account owner depend on whether they are an "eligible designated beneficiary." An eligible designated beneficiary is If the account holder's death occurred after the required beginning date, the spouse beneficiary may: Roll over the account into their own IRA.Delay beginning distributions until the employee would have turned 72.If the account holder's death occurred prior to the required beginning date, the spouse beneficiary may: Take distributions based on the longer of their own life expectancy or the account owner's remaining life expectancy.ĭeath of the account holder occurred in 2020 or later Spousal beneficiary options.If the account holder's death occurred after the required beginning date, the non-spouse beneficiary may: Take distributions based on their own life expectancy, beginning the end of the year following the year of death, or.If the account holder's death occurred prior to the required beginning date (or if the account is a Roth IRA), the non-spouse beneficiary's options are: Take distributions based on their own life expectancy.If the death of the account holder occurred after the required beginning date, the spousal beneficiary's options are: Rollover the account into their own IRA.Take distributions based on their own life expectancy, or.If the death of the account holder occurred prior to the required beginning date, the spousal beneficiary's options are: Death of the account holder occurred before 2020 Spousal beneficiary options Beginning the year following the owner's death, the RMD depends on certain characteristics of the designated beneficiary and the distribution option chosen by the beneficiary. Determination of whether the spouse is the sole beneficiary is made by September 30 of the year following the year of the account holder's death.įor the year of the account owner's death, the RMD due is the amount the account owner was required to withdraw and did not withdraw before death, if any. The spouse of the account owner has more options than non-spouse beneficiaries, if they're the sole beneficiary. Whether the original account owner died before or after their required beginning date (the first date the original account owner was required to begin taking RMDs).The relationship of the beneficiary to the account owner and certain characteristics (spouse, minor child, disabled or chronically ill individual, entity other than an individual).Whether the account owner died after 2019 (the SECURE Act made changes to the RMDs for beneficiaries if the death of the account holder occurred after 2019). ![]() The factors that affect the distribution requirements for inherited retirement plan accounts and IRAs include: ![]() Beneficiaries must include any taxable distributions they receive in their gross income. Some retirement plans require specific beneficiaries under the terms of the plan (such as a spouse or child).īeneficiaries of an IRA, and most plans, have the option of taking a lump-sum distribution of the inherited account at any time. The owner must designate the beneficiary under procedures established by the plan. A beneficiary is generally any person or entity the account owner chooses to receive the benefits of a retirement account or an IRA after they die. Beneficiaries of retirement plan and IRA accounts after the death of the account owner are subject to required minimum distribution (RMD) rules.
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