Inherited IRA-Required Death Distribution

The Required Death Distribution - How To Determine

The way required death distribution is determined and calculated was changed by the new rules for inherited IRAs. The required death distribution is the responsibility of the beneficiary of an inherited IRA to calculate and pay each year. If you have an inherited IRA, you must be familiar with the required death distributions and how they are calculated to avoid getting into trouble with the IRS or pay unnecessary taxes and penalty.

The beneficiary is responsible for calculating and withdrawing the Required Death Distribution each year.

Determining the required death distribution

The amount of the Required Death Distribution, if distributing over a person's life expectancy, is determined by

taking the IRA account balance as of the end of the prior-year (December 31st value), then
dividing it by the applicable life expectancy factor (obtained from the Single Life Expectancy Table).

How to calculate the required death distribution

The Required Death Distribution formula is:

December 31st prior-year balance
_____________________________	=	Required Death Distribution
Life Expectancy Factor

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