12-31-2019, 10:17 PM
It's more complicated than just "10 years and done."
E.g. if a minor child inherits they must immediately start taking minimum distributions based on their life expectancy (as per previous rules for inherited IRAs)
But then when they reach the "age of majority" in their state they must switch to the 10 year rule (no annual distributions required, they can defer until the 10th year)
I can see a lot of the above inadvertently staying with distributions based on the life expectancy tables instead.
Or, if you're a cynic like me, what about an unscrupulous beneficiary who inherits in 2020, but in 2028 chooses to move the inherited IRA to another custodian, telling the new custodian the data of death was not 2020, but a later year?
I've moved an inherited IRA twice to new custodians & they simply accepted whatever I told them, never asking me for any verification.
E.g. if a minor child inherits they must immediately start taking minimum distributions based on their life expectancy (as per previous rules for inherited IRAs)
But then when they reach the "age of majority" in their state they must switch to the 10 year rule (no annual distributions required, they can defer until the 10th year)
I can see a lot of the above inadvertently staying with distributions based on the life expectancy tables instead.
Or, if you're a cynic like me, what about an unscrupulous beneficiary who inherits in 2020, but in 2028 chooses to move the inherited IRA to another custodian, telling the new custodian the data of death was not 2020, but a later year?
I've moved an inherited IRA twice to new custodians & they simply accepted whatever I told them, never asking me for any verification.