Inherited IRA Guide

Morgan Stanley Smith Barney LLC and its affiliates do not provide legal or tax advice, and you should always consult your own legal and/or tax advisor regarding your personal circumstances before taking any action that may have legal and/or tax consequences. The information provided by this tool: (1) is designed to help you understand some of the common questions related to inheriting a retirement plan; (2) is derived from publicly available information from the IRS and other sources and is consolidated here as a convenience to you (and may change pending IRS guidance); and (3) does not constitute personal legal or tax advice to you. This tool is for educational purposes only. This information neither is, nor should be construed, as an offer, or a solicitation of an offer, or a recommendation, to buy, sell, or hold any security, financial product or instrument discussed therein or to open a particular account or engage in any specific investment strategy.

The Required Beginning Date (RBD) is used to determine if the original account owner was subject to Required Minimum Distributions (RMDs). The RBD is typically April 1st following the year the original account owner would have reached RMD age. RMDs are only required for Traditional IRAs, SIMPLE IRAs, SEP IRAs, 401(k)s, Profit Sharing, Money Purchase, and 403(b) accounts. Roth IRA account holders are not subject to RBDs or RMDs during their lifetime. RMD age is age 70 ½ (if born before July 1, 1949), age 72 (if born after June 30, 1949, but before 1951), age 73 (if born after 1950, but before 1960) or age 75 (for all other individuals – note, there appears to be a drafting error in the statutory language, making it unclear when age 75 starts to apply in lieu of age 73, but it appears it was intended to apply to individuals born after 1959).