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IRS Pub 590 states in the IRA Beneficiaries Section (pg 36):

Taking balance within 5 years. A beneficiary who is an individual may be required to take the entire account by the end of the fifth year following the year of the owner's death. If this rule applies, no distribution is required for any year before that fifth year.

I have named my son "John", an individual, as my IRAs' beneficiary.

What rule determines if John may be required to take the entire account by the end of the fifth year following the year of my death (as opposed to using Appendix C, Table I Single Life Expectancy)?

Is it the IRA Custodian's rules that would apply?

TIA,
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I have named my son "John", an individual, as my IRAs' beneficiary.

What rule determines if John may be required to take the entire account by the end of the fifth year following the year of my death (as opposed to using Appendix C, Table I Single Life Expectancy)?


None, unless John elects to use the 5 year rule. Such an election is usually based on failing to take earlier required distributions.

The conditions requiring an individual to use the 5 year rule are arcane (at best) and don't apply to John.

In no case are the rules based on custodian rules.

Phil
Rule Your Retirement Home Fool
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Phil,

Thank you, always helpful as usual.
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