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Long story short: My wife's dad died at 90, leaving behind three daughters and a fourth wife. The Estate was totally screwed up, and family agreed to an outcome that was approved by the court, so it's all legit. Part of the settlement involved fourth wife getting the RMDs during her life, with the beneficiaries to her inherited IRA being the three daughters. The IRA was transferred to the fourth wife as an inherited IRA, with the daughters being named beneficiaries. My question is what happens when the fourth wife dies. Does each daughter get one-third as a rollover inherited IRA, subject to RMDs of I guess the dead dad or the dead fourth wife, or will the IRA be dissolved and taxes paid, with the after-tax balance being distributed (or taxes paid by each daughter)? Thanks.

I can't find a citation and I'm working solely from memory (which may be faulty), but I believe that the beneficiary of an IRA that is already titled as a beneficiary account cannot use the life expectancy tables to calculate RMDs. The account must be liquidated within 5 years.

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