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Lane
Lane, JD, CFP, MBA, CRPS
Category: Tax
Satisfied Customers: 10469
Experience:  Law Degree, specialization in Tax Law and Corporate Law, CFP and MBA, Providing Financial & Tax advice since 1986
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I inherited an ira that went from mom to dad in 2010, then

Customer Question

I inherited an ira that went from mom to dad in 2010, then from dad to me in 2014. How do I fifure MDRs? do i use my life time table or my dad's?
Submitted: 1 year ago.
Category: Tax
Expert:  Lane replied 1 year ago.

I hold a JD (Juris Doctorate, a doctoral degree in the law), concentration in Tax Law & Corporate law, an MBA (specialization in finance & tax), and BBA from Mercer University's Stetson School of Business and Economics, as well as CFP® and CRPS designations.

I can help here

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Expert:  Lane replied 1 year ago.

As a non-spouse beneficiary, you must directly roll over the inherited assets to an Inherited IRA in your own name and use your own age and the IRS Single Life Expectancy Table for calculating the first year MRD. For each year after, you would subtract one year from the initial life expectancy factor.

Expert:  Lane replied 1 year ago.

As it sounds like you know, as your father passed in 2015, you have until Dec 31st of this year to take the first MRD.

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Also, (and I may be stating the obvious here), as a non-spouse bene' you also have the ability to take out over a 5 year period as well.

Expert:  Lane replied 1 year ago.

These would be your options if you father passed before RBD ( the Required Beginning Date for HIS taking Required Minimum Distributions)

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If your father died AFTER his RBD, then you MUST use the life expectancy method

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But again, you use your own life expectancy

Expert:  Lane replied 1 year ago.

Please let me know if you have questions

Expert:  Lane replied 1 year ago.

Here's an excellent calculator, by the way:

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http://www.bankrate.com/calculators/retirement/ira-beneficiary.aspx

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I hope this has helped ... let me know if you have questions

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IF this HAS helped, (and you don't have additional questions) ... I would appreciate a positive rating (using those stars on your screen) ... That's the only way I'll be credited for the work here.

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Thank you,

Lane

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Expert:  Lane replied 1 year ago.

Did you see my answer?

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Sorry for the data-dump ... just wanted to cover the bases

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Short answer is ... you use your life time table.

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Lane

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