What rules should I be aware of when inheriting a previously inherited Traditional IRA?

My mother inherited her sister's Traditional IRA. The account was making distributions and my mother was old enough to continue receiving them. I am now the beneficiary of my mother's account, but I have not reached the minimum age for distributions. Are there different treatment, taxes, or rules of a a non-spousal Traditional IRA if someone inherits from a parent who had inherited the account themselves? Or are the rules the same as they were for the first transfer?

Estate Planning, IRAs, Retirement Plans
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August 2017
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You must follow the same distribution pattern your Mother set up as the original beneficiary.  So whether your mother set up a 5 year distribution or based upon her life expectancy, you must follow the same pattern.  Therefore, if it was based upon your Mom's life expectancy, you must continue based upon her life expectancy.  So the distributions remain as your Mother set them up.  The account titling will, however, change with your name as beneficiary and your Mother as decedent.  You aunt's name as decedent will drop off.

Hope this helps and best of luck, Dan Stewart CFA®

August 2017
August 2017
August 2017
August 2017