Irs Inherited Ira Rmd Table 2018

masuzi October 3, 2018 Uncategorized Leave a comment 53 Views

As the United States ages, more and more people are inheriting IRAs from their loved ones. For those who are not familiar with the process, it can be confusing and overwhelming. In this article, we will discuss the basics of inherited IRA RMDs, provide an overview of the 2018 RMD table, and explain how the rules apply to different types of beneficiaries.

The Internal Revenue Service requires that anyone who inherits an IRA must begin taking required minimum distributions (RMDs) no later than December 31 of the year following the death of the original IRA owner. This is known as the “inherited IRA RMD rule”. The IRS provides a table that determines the distribution amount for each type of beneficiary and for a variety of retirement account types. Understanding the rules and the table can help ensure that you withdraw the correct amount and remain in compliance with the law.

When it comes to inheritance, the Internal Revenue Service (IRS) has specific rules that must be followed. One of the most important of these is the requirement that anyone who inherits an IRA must begin taking required minimum distributions (RMDs). The amount of the distribution depends on the type of account that was inherited, as well as the age of the beneficiary. The IRS publishes an RMD Table each year to help people understand the amount that must be withdrawn. In 2018, the RMD table was updated to reflect changes to the tax laws.

It is important to note that the RMD table applies only to inherited IRAs. If you have inherited other types of retirement accounts, such as 401(k)s or 403(b)s, the RMD rules may be different. It is also important to remember that the RMD table is designed to ensure that you take the correct amount of distributions each year. Taking too little or too much could result in penalties or additional taxes.

The 2018 RMD table is based on the life expectancy of the beneficiary. It is important to remember that the life expectancy used in the table is determined by the beneficiary's age at the end of the previous calendar year. For example, if you were 50 at the end of 2017, your life expectancy would be based on the age of 50, not 51.

The RMD table for 2018 is divided into two sections: one for beneficiaries who are under 70 ½ and another for beneficiaries who are 70 ½ or older. For beneficiaries who are under 70 ½, the amount of the distribution is determined by multiplying the account balance by a factor derived from the Uniform Lifetime Table. For beneficiaries who are 70 ½ or older, the amount of the distribution is determined by multiplying the account balance by a factor derived from the Single Life Expectancy Table.

In addition to the RMD table, there are also special rules that apply to certain types of beneficiaries. For example, if you are the surviving spouse of the original IRA owner, you may be able to rollover the inherited IRA into your own IRA and delay taking RMDs until you reach age 70 ½. Certain trusts and charities may also be exempt from the RMD rule.

It is important to understand the rules and the RMD table when it comes to inheriting an IRA. By understanding the requirements and the RMD table for 2018, you can ensure that you are taking the correct amount of distributions and remain in compliance with the law.

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