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Take note that calculating your RMD works a bit differently if your spouse is the only primary beneficiary to your account and is more than 10 years younger than you.
If your sole beneficiary for an account is your spouse, and they're more than 10 years younger than you, then you'll use a joint life expectancy table based on both your ages to determine your ...
If your spouse is more than 10 years younger, you can name them as the sole beneficiary of your retirement account, which allows you to calculate your RMDs using your spouse’s longer life ...
If you inherited an IRA from someone subject to RMDs after Dec. 31, 2019 and you're not a spouse, minor child, or less than 10 years younger than the original owner, you'll also be subject to RMDs.
There are a few exceptions to the rule for qualifying beneficiaries such as spouses, minor children, and beneficiaries who are less than 10 years younger than the account's original owner.
For example, while most non-spouse beneficiaries must spend down the accounts in 10 years, they only have a required minimum distribution (RMD) each year if the decedent was past the RMD age.
That results in a bigger RMD because an older beneficiary's life expectancy is shorter than the younger original owner's was. However, the IRS made a ruling in 2024 that says you can now deplete ...
For many, taking a small distribution each year instead of a big distribution in the 10th year after inheriting an IRA will work out better for their wallet due to the tax impact of a big lump sum ...