You Asked Us - IRA Beneficiary Options

Q: My client inherited an IRA from her uncle who reached age 70 in 2006, and died on January 31, 2007. Is she subject to the rules that apply when someone dies before the RBD or the rules that apply when someone dies after the RBD?
A: She is subject to the rules that apply when someone dies before the RBD. The RBD is April 1 of the year following the year the IRA owner reaches age 70 ½. Therefore, if someone dies before April 1 of the year that follows the year he/she reaches (or would have reached) age 70 ½, he/she died before the RBD.

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