Updated: Oct 2024
The rules surrounding inherited IRAs have changed a lot over the past couple of years. A variety of regulations have caused a lot of stress and confusion for both advisors and their clients. This flowchart will help give you and your client clarity about how they must handle distributions from their inherited traditional IRA.
This flowchart covers important factors a client needs to consider when determining how they must handle distributions from their inherited traditional IRA, such as:
- Determining whether the client is an Eligible Designated Beneficiary or Non-Eligible Designated Beneficiary, and how that will affect their distribution requirements.
- Understanding how their distribution requirements will be affected based on when the owner passed away (i.e., before or on/after their required beginning date).
- Who the 10-Year Rule does and does not apply to.
- Whether required minimum distributions (RMDs) apply, and whose life expectancy they are based on.