IRS Issues PLR Confirming Inherited IRA Segregation without Taxable Distributions, Life-Expectancy RMDs

The IRS has published a private letter ruling on I.R.C. §§408 and 401 confirming inherited IRA segregation allows estate beneficiaries to divide a decedent’s traditional IRA into separate inherited IRAs through trustee-to-trustee transfers without triggering taxable distributions, with each beneficiary receiving required minimum distributions over the decedent’s remaining life expectancy where the estate lacks a designated beneficiary but the will names individual beneficiaries. [PLR 202624001]

This story was produced by Bloomberg Tax Automation, and edited by Bloomberg Tax staff.