Questions Inhertied IRA revised

[Guest mmoore1198@hotmail.com]

Let me rephrase the question, We have a tax client that mother passed away in 2009. she had an IRA. She was over 70 1/2 and had started taking her required minimum distributions. Beneficiary is her son. He is age 55. What is the latest he must start taking distributions from the IRA? does the 59 1/2 penalty apply to him if he takes a lump sum payment

[ETA Consulting LLC]

The 10% penalty will not apply since the distribution is made to the beneficiary on the account of death.

Since the taxpayer died after their required beginning date, the distributions must continue annually. In this case, the son should've taken a distribution by December 31, 2010 using his single life expectancy during 2010. This year, he will be due another distribution using the 2010 life expectancy minus 1.

The 1 & 5 year rule would not apply since the mother had already reached her Required Beginning Date for 70 1/2 distributions.

Good luck!