If you inherited an IRA from someone who passed after 12/31/2020, there has been a lot of confusion on how to officially handle these accounts. All agree that the account must be completely emptied by the end of the 10th year following the year of the original account owner’s death. However, are you supposed to be taking RMDs from this inherited IRA? Initially, the answer was no. Then, the IRS said yes but they would not require them before 2023. Now, we are still waiting on final regulations from the IRS but the IRS has delayed RMDs to 2024 at the earliest. What does this mean? If you have an inherited IRA from someone who passed after 12/31/2020, you are not required to take a RMD until 2024 at the earliest. You can take distributions but you are not required to do so.
Accounting and Consulting