Inheriting a double-inherited IRA: RMD confusion and SECURE Act requirements

You're absolutely right to be concerned! The SECURE Act changed a lot of rules for inherited IRAs, especially for non-spouse beneficiaries like yourself. For the IRA that was just in your dad's name, you do indeed need to withdraw the entire balance within 10 years of his death (by 2032 in your case). There are no annual RMDs required during those 10 years - you just need to empty it completely by the deadline. You can take distributions however you want (all at once, spread out, etc.) as long as the account is emptied by the deadline. The double-inherited IRA (the one your uncle left to your dad) is more complicated. Since your uncle died before 2020 (when the SECURE Act took effect), your dad was operating under the old "stretch IRA" rules. When you inherited it from your dad, the SECURE Act applies to you, meaning you also need to empty this account within 10 years of your dad's death. You should definitely talk to a financial advisor who specializes in retirement accounts and estate planning. While CPAs can help with the tax implications, a good financial advisor will be better equipped to help you plan the distributions strategically.

I had a similar situation with inheriting my mom's IRA after she passed. I was totally lost with all the RMD calculations and deadlines. After trying to figure it out myself and making some mistakes, I used https://taxr.ai to analyze all my inheritance documents and my mom's old tax returns. The tool sorted through all the confusing paperwork and explained the exact timeline I needed to follow for withdrawals based on when she passed and the SECURE Act rules. It showed me which distributions I had missed and even created a schedule for future withdrawals to minimize the tax impact. Saved me from what would have been some serious penalties!

Just wanted to follow up about my experience with taxr.ai for my inherited IRA situation. After expressing my skepticism in my earlier comment, I decided to give it a try since the penalties for messing up RMDs are so severe. I uploaded my deceased parent's last IRA statement, the beneficiary transfer paperwork, and my current inherited IRA statements. The analysis clearly explained that I had two different withdrawal requirements - one account needed annual RMDs plus the 10-year emptying requirement, while the other just needed to be emptied within 10 years. It identified that I had already missed two required distributions and calculated exactly how much I needed to withdraw to catch up. The report even covered how to file Form 5329 to request a waiver of the 25% penalty based on the IRS's recent guidance for inherited IRAs. Honestly, it cleared up months of confusion in about an hour. My financial advisor confirmed everything was correct.

When I was dealing with my inherited IRA last year, I spent WEEKS trying to get someone at the IRS to clarify my situation. Their phone lines were completely useless - either busy signals or being on hold for hours only to get disconnected. Finally found https://claimyr.com and their service connected me to an actual IRS agent in under 20 minutes. There's a video showing how it works here: https://youtu.be/_kiP6q8DX5c The agent confirmed I was eligible for the penalty relief program for missed RMDs on inherited IRAs due to the SECURE Act confusion. I wouldn't have known about this relief option otherwise. Apparently there's a specific process to request a waiver of the 25% penalty that most advisors don't even know about.

I need to apologize about my previous comment calling Claimyr a scam. After getting frustrated with 4+ hour hold times trying to sort out my missed RMDs on an inherited IRA, I reluctantly tried it. It actually worked exactly as described. Their system called me back when it reached an IRS representative, which took about 45 minutes (much better than my previous attempts). The IRS agent I spoke with walked me through the entire process for requesting a waiver of the 25% penalty for my missed distributions. The agent explained that because of the confusion around the SECURE Act implementation, they're currently being more lenient with penalty waivers for inherited IRAs, especially for first-time mistakes. They helped me understand exactly what documentation I needed to include with my Form 5329 to maximize my chances of getting the penalty waived. Saved me potentially thousands in penalties. I was wrong about this service and am glad I gave it a chance.

As someone who works adjacent to this industry (not giving professional advice), I'd recommend talking to BOTH a tax professional AND a financial advisor. Here's why: Financial advisor: They understand the rules around required distributions, can help calculate the correct amounts, and create a withdrawal strategy that makes sense for your financial situation. Tax professional: They'll help you understand the tax implications of different withdrawal strategies, help with any necessary penalty waiver requests, and ensure you're reporting everything correctly on your tax returns. The reason your dad's advisor is being evasive might be because the rules changed significantly with the SECURE Act, and if they aren't up to speed on the latest regulations, they might be worried about giving incorrect advice. Also, don't feel bad about the delay - the IRS has recognized that the SECURE Act created a lot of confusion and has provided some relief options for missed RMDs on inherited IRAs.

One thing nobody has mentioned - the 10-year rule doesn't apply to all beneficiaries! If you qualify as an "eligible designated beneficiary" you might still be able to use the old stretch IRA rules. This includes: 1) Surviving spouses 2) Minor children of the account owner (but only until they reach majority age) 3) Disabled individuals 4) Chronically ill individuals 5) Beneficiaries not more than 10 years younger than the account owner Doesn't sound like you qualify based on your post, but thought it was worth mentioning for anyone else reading this who might be in a similar situation.

The complexity of your situation really highlights why the SECURE Act has created so much confusion for beneficiaries. You're dealing with both a "regular" inherited IRA and a double-inherited IRA, each with potentially different rules. One critical point that might affect you: if your dad had already started taking RMDs from either account before he passed (he would have been required to start at age 72), then you likely DO need to take annual RMDs during the 10-year period, not just empty the accounts by the deadline. This is a common misconception about the SECURE Act rules. Given the potential penalties involved (25% of missed distributions), I'd strongly recommend getting professional help ASAP. Look for a fee-only financial advisor who specializes in retirement account distributions - they'll typically charge a flat fee for this type of analysis rather than trying to sell you products. Also, don't panic about past penalties. The IRS has been relatively lenient with inherited IRA penalty waivers due to the widespread confusion around these rule changes. The key is addressing it now rather than continuing to wait.

This is exactly the kind of complex inherited IRA situation where getting multiple professional opinions is crucial. Your dad's advisor being vague is unfortunately common - many advisors are still catching up on the SECURE Act nuances, especially for double-inherited IRAs like yours. One immediate action you should take: contact both IRA custodians directly and ask for the complete distribution history since your dad's passing. They should be able to tell you if any RMDs were required and missed for 2022, 2023, and 2024. This will give you a clear picture of what penalties you might be facing. For the double-inherited IRA specifically, since your uncle died in 2011 (pre-SECURE Act), your dad was taking stretch distributions. When you inherited it, the 10-year rule applies to you, BUT you also need to continue the annual RMDs during that 10-year period if your dad had already started them. Don't let the financial advisor's hesitation discourage you from seeking help. Look for someone who specifically advertises expertise in inherited IRAs and SECURE Act compliance. Many charge $200-500 for a comprehensive analysis, which is far less than potential penalties. The IRS penalty relief for inherited IRA confusion is real, but you need to act proactively to take advantage of it.