Eligible Designated Beneficiary or EDB is a term created by the SECURE Act under IRS rule 401(a)(9).
An EDB is a person who has lifetime distribution opportunities to an Individual Retirement Account or IRA. Because this new rule set changes required minimum distribution rules, an EDB designation is significant.
In general, an Eligible Designated Beneficiary is a:
- Surviving spouse to an employee or owner of an individual retirement account,
- A Child of an IRA owner who has not reached the age of majority,
- A beneficiary who is also disabled under rule 72(m)(7),
- A chronically ill person within the meaning of section 7702B(c)(2), and
- An individual who is not more than 10 years younger than the employee or owner of a retirement plan.
Because this term modifies the rules where a person dies before distributions from an IRA are completed, this new rule impacts both the young and old.