My mother-in-law’s sister passed away in October 2022 and my father-in-law just passed away this year in August. She is 79 years-old currently lives in Oahu, though we’re trying to convince her to relocate to the SF Bay Area as she’s getting senile. After that I’d need your firm’s help to file her tax returns going forward. Since my wife is the only daughter, I’m now tasked with settling my mother-in-law’s modest estate and help plan for her retirement. I used the following references to draw up the conclusions below: https://www.irs.gov/publications/p590b#en_US_2023_publink100089979 https://www.irs.gov/retirement-plans/plan-participant-employee/retirement-topics-beneficiary 1) IRA accounts of my father-in-law (deceased husband) Take RMD in 2024 in husband's age, if not done so already; then rollover the account to my mother-in-law's own IRA accounts 2) Inherited IRA from deceased sister-in-law - Death of the account holder occurred in 2020 or later - Mother-in-law is not an eligible designated beneficiary => Follow the 10-year rule 10-year rule: If a beneficiary is subject to the 10-year rule, Empty the entire account by the end of the 10th year following the year of the original account owner’s death No need to take RMD during the interim 3) Other inherited non-IRA investment accounts with stocks and mutual funds from sister and husband - Change cost basis of all holdings to be as of the market values on the date of death of the original account owner

Your conclusions are generally on the right track, but let's clarify and ensure compliance with the latest tax laws: 1. **IRA Accounts of Your Father-in-Law:** - Since your father-in-law passed away in 2023, your mother-in-law, as the surviving spouse, can treat the IRA as her own. This means she can roll over the IRA into her own IRA account. - If your father-in-law was required to take a Required Minimum Distribution (RMD) for 2023 and it was not taken before his death, your mother-in-law must take it by December 31, 2023. - Starting in 2024, she will take RMDs based on her own life expectancy. 2. **Inherited IRA from Deceased Sister-in-Law:** - Since your mother-in-law is not an eligible designated beneficiary (e.g., not a spouse, minor child, disabled, chronically ill, or not more than 10 years younger than the deceased), the 10-year rule applies. - Under the 10-year rule, the entire balance must be distributed by the end of the 10th year following the year of death (2032 in this case). No annual RMDs are required during this period unless specified by the plan. 3. **Inherited Non-IRA Investment Accounts:** - For stocks and mutual funds, the cost basis is stepped up to the fair market value on the date of death of

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