The SECURE Act of 2019 changed the rules for Inherited IRAs. The distributions can no longer be stretched over the beneficiary’s lifetime in many cases. This became known as the new 10 year rule. However, there was significant confusion about this new rule, which left many uncertain on what to do. The IRS recently published a notice on this very topic to help clear the confusion and address those that made incorrect distributions in 2020 and 2021.
We reference the following Social Security publication- Notice 2022-53: Certain Required Minimum Distributions for 2021 and 2022 (
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Inherited IRA Distribution Rules: Understanding the New 10 Year Rule
Inherited IRAs are subject to different rules than traditional IRAs, and the IRS has recently updated the distribution rules for inherited IRAs. As of January 1, 2020, the 10-year rule has been implemented for inherited IRAs, which requires the entire balance of an inherited IRA to be distributed within 10 years of the original owner’s death.
The new 10-year rule applies to all inherited IRAs regardless of the type of IRA or the beneficiary’s age. This means that regardless of whether the beneficiary is a spouse, a non-spouse, or a minor, the entire balance of the inherited IRA must be distributed within 10 years of the original owner’s death.
The 10-year rule is designed to encourage beneficiaries to take advantage of the tax benefits of an inherited IRA. Under the 10-year rule, the beneficiary can spread out the distribution of the inherited IRA over the 10-year period, allowing them to take advantage of the tax benefits of the IRA for the full 10-year period.
The IRS also provides relief for certain beneficiaries who may be unable to comply with the 10-year rule. For example, if the beneficiary is a minor, the 10-year rule does not apply and the beneficiary can continue to take distributions from the inherited IRA until they reach the age of majority. Additionally, if the beneficiary is disabled or chronically ill, they may be able to take distributions from the inherited IRA over a period of time that is longer than 10 years.
Inherited IRAs are subject to different rules than traditional IRAs, and the new 10-year rule provides an important update to the distribution rules for inherited IRAs. Beneficiaries should be aware of the 10-year rule and the relief provided by the IRS for certain beneficiaries who may be unable to comply with the rule.
Can I transfer the inherited money into an account of my own and pay the taxes then?
So my mother passed in 2021 at the age of 94 and had not taken her RMD by her date of death but I took it in 2021. I do not want to take a distribution in 2022, am I required to do so under the new rules since the market is down. I would like to skip 2022 – is that allowed given her date of death in 2021. Also, I guess based on this lecture I need to take distributions every year for 10 years or if I can skip 2022 then 9 years. Is there a table that shows the total amount to take every year or is it just the amount divided by 9 years. Thank you.
What about 2022? This year?? You said a reprieve for 2019,2020, and 2021. You failed to mention 2022. Is the IRS letting 2022 slide as well? Also, didn't the CARES Act cover 2020 to give us a pass on taking RMD and not what you call a "reprieve?" 2019 is a pass too?
I thought that If the IRA owner died 2019 and before, stay on your same distribution schedule. If the IRA owner died in 2020, 2021, or 2022; you can skip RMD this year without penalty.