Updated: 08/15/2024

The rules surrounding inherited IRAs have changed a lot over the past couple of years. A variety of regulations (both pending and finalized) 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 twice-inherited traditional IRA.

This flowchart covers important factors a client needs to consider when determining how they must handle distributions from their twice-inherited traditional IRA, such as:

• Determining whether the most recent owner (i.e., the second owner) is an Eligible Designated Beneficiary or Non-Eligible Designated Beneficiary, and how that will affect their distributions requirements.
• Understanding how their distributions requirements will be affected based on when the original owner (i.e., the first owner) passed away (i.e., before or on/after their required beginning date).
• Who the 10-Year Rule does and does not apply to, and determining when the 10-Year window starts.
• Whether required minimum distributions (RMDs) apply, and whose life expectancy they are based on.