Q. Can you explain the regulations regarding successor beneficiaries of IRAs?

A. A successor beneficiary is the named beneficiary of an individual who has inherited an IRA. It’s important, if you are the beneficiary of an IRA, that you name a beneficiary of your inherited IRA immediately to avoid probate.

Successor beneficiaries must use the 10-year rule. If the original beneficiary has been using the 10-year rule, the successor beneficiary must continue to use the 10-year rule using the life expectancy of the original beneficiary.

For example, suppose your brother, Thomas, inherited an IRA from his mother three years ago who was taking yearly RMDs. He used the 10-year rule and had taken required minimum distributions (RMDs) for three years. You would be required to continue taking RMDs for seven years using Thomas’ single-life expectancy. At the end of seven years, you would have to distribute the remaining assets in the IRA.

If you inherited an IRA from someone who, as a beneficiary was withdrawing distributions on his life expectancy, (not the 10-year rule), you would be allowed to establish a 10-year rule for yourself and use the single life table based on the original beneficiary’s age.

Example: Your cousin, Henry, inherited an IRA from his mother 10 years ago before the SECURE Act passed. His mother had been taking annual RMDs because she had reached her required beginning date. Henry named you as the successor beneficiary, and he has died.

Under the existing regulations at the time he inherited the account, he had been able to take yearly distributions based on his single-life expectancy. Because he was not using the 10-year rule (which was not in effect at the time of his inheritance) when he died, you are allowed to use the 10-year rule, making withdrawals yearly for your RMD using Henry’s single life expectancy.

Q. What is the difference between zero Treasury bills and regular Treasury bills regarding reporting interest on my tax return?

A. With zero Treasury bills, interest is payable on an accrued basis, meaning interest earned but not received yet. With regular Treasury bills, you would report interest earned after the bills mature.

Q. I no longer have earned income but I want to convert some of my traditional 401(k) assets to Roth 401(k)s. Can I do that?

A. Yes. You don’t have to have any earned income to do a Roth rollover for some or all of your traditional 401(k) holdings. The same regulation applies to IRAs as well.

Q. I was divorced after 10 years, and have been receiving a portion of my ex’s pension, which was earned outside Social Security. In a recent column, you indicated that if you have pension income from work outside of Social Security, your survivor benefit from Social Security would be reduced by 2/3 of your pension income from a pension earned outside Social Security. If my ex died before me, I would still be entitled to income from his pension. Does the existing GPO (government pension offset) law have any impact on my survivor benefit?

A. No. The GPO offset only applies to a pension received based on your work record, not pension earned by another party.

Elliot Raphaelson welcomes your questions and comments at raphelliot@gmail.com.