Inherited IRA RMD for 2023

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S0ngbird
S0ngbird Member Newcomer
edited January 15 in Retirement Income

I am 64, My father passed in 2020 at the age of 80 and I have inherited his IRA. I know the IRS waived any penalties for not taking RMDs for 2021 and 2022 while they tightened up their guidance on the 10 year rul. Has the penalty been waived again for 2023 for everyone?

Some sources say you must take the RMD for 2023 on Inherited IRAs where the decedent passed in 2020 or 2021, that the 2023 penalty waiver only applies to those where the owner passed in 2022.

Can you clarify? Thank you.

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Answers

  • rachels
    rachels FreeTaxUSA Agent
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    Hi S0ngbird,

    Based on IRS Notice 2023-54, the penalty for not taking an RMD for certain inherited IRAs will not be charged for 2023, since the IRS has not issued final regulations on the matter. Specifically, see pages 12-13 of the IRS notice, which discuss the Guidance for Specified RMDs for 2023. Page 13 specifies that the waiving of the RMD penalty applies to IRAs of individuals who died in 2020, 2021, or 2022.

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