Broker Check

Required Minimum Distributions from Inherited IRAs

December 13, 2023

The 10-year Rule, Three Years in a Row

If you want a clear answer to something rather important, just ask the government. On December 20, 2019, the SECURE Act was passed. Accompanied by a long list of other items, it attempted to address how required minimum distributions (RMDs) would be handled, starting with anyone passing away after January 1, 2020. We are now on the eve of 2024, and it appears they have this “Act” all ironed out. Thank you! 

On July 14, 2023, the IRS issued Notice 2023-54. I know we have been over this a solid three times, but just as a refresher, here it is again.

There are now two primary categories of beneficiaries: (1)Eligible Designated Beneficiaries (EDB) and (2) Non-Eligible Beneficiaries. If you are an EDB, the 10-year rule does not apply to you. The EDB qualifications are:

  • A spouse
  • Someone no more than ten years younger than the account owner
  • A disabled or chronically ill individual
  • A minor (stay tuned for this one)
  • The beneficiary of an owner who passed away before January 1, 2020

If you are a Non-Eligible Designated Beneficiary (NEDB) and don’t meet the above qualifications, you have ten years from the date of death to deplete or transfer the account as it stands today. NEDBs can use their life expectancy to calculate the RMD for years 1-9 and then take the balance out of the account in year 10. Remember, like all RMDs, you can always take more. You can’t take less. There is no penalty for those NEDBs that opted not to take an RMD from an Inherited IRA in 2021 and 2022. You should be making the distribution in 2023 if you are otherwise required to do so. 

If you have any questions or concerns about this act, please get in touch with your Financial and Tax professional for additional information and details. Feel free to contact me at, too. 


Brian Pitell

BPG Planning