Inherited IRA from 2021 Death - Confused About Required Minimum Distributions (RMDs)

The rules for inherited IRAs changed significantly with the SECURE Act, which is causing the confusion you're experiencing. Since the original owner died in 2021 (after the SECURE Act went into effect) and was already taking RMDs, here's what applies: If you're a non-spouse beneficiary (which it sounds like you are), you generally fall under the 10-year rule, but you DON'T have to take exactly 1/10 each year. The rule simply requires the entire account to be depleted by the end of the 10th year following the year of death. You could take nothing for 9 years and everything in year 10 if you wanted to (though that might not be tax-efficient). However, there's an important distinction: because the original owner was already taking RMDs (over 72 and taking distributions), you must take at least the annual RMD amount each year AND empty the account by the end of 10 years. This is sometimes called the "hybrid method." Check IRS Publication 590-B, specifically the sections on inherited IRAs and the SECURE Act provisions. The rules are complex, so getting professional guidance specific to your situation is worth it.

After spending weeks in the same situation with an inherited IRA from my late father, I found this amazing tool at https://taxr.ai that saved me so much headache! I uploaded my IRA documents and answered a few questions, and it gave me an exact breakdown of my required distributions and even explained the hybrid method (annual RMDs + 10-year rule) that applies to my situation. It cut through all the confusion from different advice I was getting. Since your situation involves the SECURE Act and a 2021 death with an owner already taking RMDs, it handles those exact complexities. It also gives you a personalized report you can show your advisor or keep for your records.

I was totally skeptical about online tax tools until I finally tried taxr.ai for my inherited IRA situation. What a difference! My situation was almost identical - inherited from my sister who passed in 2021 at 77, and I got conflicting advice from my brokerage and accountant. The tool immediately identified that I needed to follow the "hybrid method" (taking annual RMDs while still depleting the account within 10 years). It even showed me how varying my withdrawal amounts in different years could save me thousands in taxes by keeping me in lower tax brackets. What really impressed me was how it explained the specific IRS rules applying to my situation in plain English. My accountant actually asked me where I found the information because it was so clear! If you're dealing with an inherited IRA from someone who died after the SECURE Act and was already taking RMDs, this is definitely worth checking out.

If you're struggling to get straight answers from your brokerage about inherited IRA rules, you might need to speak directly with the IRS. I was in the same situation last year and spent HOURS on hold trying to reach someone who could help. Then I found https://claimyr.com and used their service to get a callback from the IRS instead of waiting on hold. You can see how it works here: https://youtu.be/_kiP6q8DX5c - basically they wait on hold for you and call when an agent is ready. I got connected with an IRS specialist who confirmed the exact rules for my inherited IRA (which was also subject to the SECURE Act). Given how complex the inherited IRA rules are since the SECURE Act, especially with the "hybrid method" that applies to your situation, getting definitive guidance directly from the IRS might be the way to go.

I was completely skeptical about that Claimyr service mentioned above, but after struggling with my inherited IRA questions for months, I gave it a try out of desperation. I'm genuinely shocked at how well it worked. Got a call back in about 45 minutes and spoke with an IRS retirement account specialist who confirmed exactly what I needed to know about the "hybrid method" for inherited IRAs. The agent explained that because the original owner died after 2020 and was already taking RMDs, I need to take annual distributions based on my life expectancy AND empty the account within 10 years. The IRS agent even emailed me the specific sections from their internal guidance that addressed my situation. Saved me from making a potential mistake that could have resulted in a 50% penalty on missed distributions. Definitely worth it for complex situations like inherited IRAs under the new rules.

Just went through this with my dad's IRA last year. The SECURE Act really complicated things. I found this IRS worksheet that might help: https://www.irs.gov/publications/p590b (look for "Worksheet for Determining Required Minimum Distribution for Inherited Accounts"). For IRAs inherited after 2019 where the original owner was already taking RMDs, the rules are: 1. You must take annual RMDs based on your life expectancy 2. You must empty the account by the end of the 10th year after death So your tax preparer is half right (10-year rule applies) but wrong about needing exactly 1/10 per year. And Fidelity is half right (you use life expectancy tables) but wrong if they're not mentioning the 10-year complete distribution requirement.

Has anyone tried running this scenario through different tax software? I know inheriting an IRA is complicated but most tax programs should be able to calculate your RMD correctly. I'm dealing with an inherited Roth IRA which apparently has different rules.

I went through this exact same situation when my grandmother passed in 2021 at age 78. The confusion you're experiencing is totally understandable because the SECURE Act created these hybrid rules that many financial advisors are still getting wrong. Here's what I learned after consulting with a CPA who specializes in retirement accounts: Since your uncle died in 2021 (post-SECURE Act) and was already taking RMDs, you're subject to BOTH rules simultaneously - you must take annual RMDs based on your life expectancy AND completely empty the account by December 31, 2031 (10 years after the year of death). The key thing your tax preparer got wrong is that you don't have to take exactly 1/10 each year. You take the higher of: (1) the annual RMD calculated using the Single Life Expectancy Table, or (2) whatever amount ensures the account will be fully distributed by the 10-year deadline. I'd recommend getting a second opinion from a CPA or Enrolled Agent who specifically deals with inherited retirement accounts. The penalty for getting this wrong is 50% of the amount you should have distributed, so it's worth paying for expert advice to get it right.