Individual inherits an IRA from her father who passed away in 2000. The father reached age 70 1/2 a couple of years before his death. The beneficiary (daughter) took a distribution in 2000 based on 1/5 of the balance of the IRA. Does this constitue some kind of irrevocable election requiring her to complete the distribution over 5 years or can she take the 2001 distribution based on her life expectancy?

The five year rules applies only when the participant dies before the required beginning date, i.e. before April 1, following the year of the 70 1/2 birthday anniversary.

The daughter is permitted to take distributions over her single life expectancy (according to the New proposed RMD regulations), beginning 2001