Is the inherited IRA RMD Waived in 2024?
The question of whether the inherited IRA required minimum distribution (RMD) is waived in 2024 is one that many individuals with inherited IRAs are asking. Understanding the rules surrounding RMDs for inherited IRAs is crucial for those who have inherited an IRA from a deceased account holder. This article aims to provide clarity on this topic and help individuals navigate the complexities of inherited IRAs and RMDs.
Understanding Inherited IRAs and RMDs
An inherited IRA is an individual retirement account (IRA) that is passed on to a beneficiary upon the death of the original account holder. The rules governing inherited IRAs are different from those of traditional IRAs, particularly when it comes to required minimum distributions (RMDs).
RMDs are the minimum amounts that must be withdrawn from an IRA each year after the account holder reaches a certain age. For traditional IRAs, the RMD age is 72 (increased from 70½ under the SECURE Act of 2019). However, for inherited IRAs, the RMD rules are more complex.
Waiver of RMDs in 2024
Is the inherited IRA RMD waived in 2024? The answer is not straightforward. Generally, inherited IRAs are subject to RMDs, but there are certain exceptions and provisions that may apply.
Under the SECURE Act, most non-spouse beneficiaries of inherited IRAs must begin taking RMDs by the end of the 10th year following the year of the original account holder’s death. This means that if the original account holder passed away in 2023, the inherited IRA RMD would be due by December 31, 2033.
However, there are some exceptions to the 10-year rule. For example, if the original account holder passed away before reaching age 72, the beneficiary may have to take RMDs over their own life expectancy. Additionally, certain types of inherited IRAs, such as a spousal IRA, may be subject to different RMD rules.
Changes in 2024
As for 2024, there have been no significant changes to the rules governing inherited IRAs and RMDs. Therefore, it is safe to assume that the same rules will apply in 2024 as in previous years. Beneficiaries of inherited IRAs will still need to follow the 10-year rule or other applicable RMD rules, depending on the circumstances.
Seeking Professional Advice
Given the complexities of inherited IRAs and RMDs, it is essential for individuals to seek professional advice when managing their inherited IRAs. A financial advisor or tax professional can help navigate the rules and ensure that RMDs are taken correctly and on time.
In conclusion, while the inherited IRA RMD is not generally waived in 2024, there are exceptions and provisions that may apply. It is crucial for beneficiaries to understand the rules and seek professional advice to ensure compliance with RMD requirements.
