Non-spouse beneficiaries usually face the 10-year drain. Eligible designated beneficiaries (minor child of decedent, disabled, chronically ill, not more than 10 years younger) stretch over life expectancy.
Your Distribution Path
Rule that applies
10-year drain
Final drain deadline
Dec 31, 2034
Annual RMD required years 1-9?
Yes
Year-1 RMD estimate
$13,605
Avg. annual if smoothed evenly
$40,000
Penalty for missed RMD
25% (10% if cured)
Final IRS regs (July 2024) confirmed annual RMDs ARE required in years 1-9 of the 10-year window if the original owner had already begun RMDs (§401(a)(9)(H)(ii) and Treas. Reg. §1.401(a)(9)-5(d)). Penalty waived for missed RMDs in 2021-2024 under Notices 2022-53, 2023-54, 2024-35.
SECURE Act of 2019 §401 added IRC §401(a)(9)(H). Single Life Expectancy Table used for EDB estimate. Current as of 2024. Educational tool, not advice. Call 689-331-5723 or email info@zerofusstaxes.com.