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February 28, 2009

Can my client use the five-year rule to take distributions from the IRA? The owner was age 80 when he died

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Can my client use the five-year rule to take distributions from the IRA? The owner was age 80 when he died

My client inherited an IRA from his father who died at age 80. Can my client use the five-year rule to take distributions from the IRA?

No. The five-year rule is not an option when the IRA owner dies on or after the required beginning date (RBD).

Also, for IRAs inherited after 2019, the 5-year rule would apply only to a non-person beneficiary, where the owner died before the RBD.

Written By

Denise Appleby

Denise is CEO of Appleby Retirement Consulting Inc., a firm that provides IRA resources for financial/ tax/legal professionals. She has over 20 years of experience in the retirement plans field, which includes training and technical consultation.

Denise writes and publishes educational /marketing tools for advisors; available at http://irapublications.com. Denise co-authored several books on IRAs

Denise is a graduate of The John Marshall Law School, where she obtained a Masters of Jurisprudence in Employee Benefits, and has earned 5 professional retirement designations.
She has appeared on numerous media programs, sharing her insights on retirement tax laws.

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