INELIGIBLE DESIGNATED BENEFICARY - DEATH AFTER
01.Core Concepts
2019: BEFORE RBD • An ineligible designated beneficiary must receive the full distribution of the inherited account no later than December 31 st of the year containing the 10th anniversary of the account owner’s death. • No requirement to continue annual distributions. • Any amount (or $0) can be taken each year for years 1 – 9. • Any balance remaining in 10th year must be distributed. NONSPOUSE ELIGIBLE DESIGNATED BENEFICARY - DEATH AFTER 2019: BEFORE RBD • Nonspouse eligible designated beneficiary can either: • Take distributions over their single life expectancy • First distribution by December 31st of the year following death • Subsequent distributions – factor reduced by one • Follow the 10-year rule (same as for ineligible beneficiaries) • Beneficiaries may always distribute more than the required minimum amount.