Death before RMD required beginning date
I have a client who died in Dec 2008, the same month he turned 70 1/2. He decided to wait until APril 1, 2009 to take his RMD for 2008. Is his spouse required to take an RMD from his IRAs? Also, he was still working and contributing to an employer sponsored 457 b plan. Does she have to take RMD from this for 2008 tax year?
Permalink Submitted by Alan Spross on Thu, 2009-03-05 19:55
No 2008 RMD is required because he died prior to his RBD. And no 2009 RMD is required because these have all been waived by WRERA. Unless she is under 59.5, she should roll these over to her own IRA.
Permalink Submitted by Jason Cooprider on Fri, 2009-03-06 15:13
Ok, thanks for the reply. When I read the IRS code publication 590, it states “Temporary waiver of required minimum distribution rules for 2009. For 2009, you are not required to take a minimum distribution from your traditional IRA. This waiver applies to IRA participants as well as to beneficiaries. The waiver also applies to you if you turn 70½ in 2009 and delay your 2009 required minimum distribution until April 1, 2010. The waiver does not apply to minimum required distributions for 2008, even if you turned 70½ in 2008 and choose to take the 2008 required minimum distribution by April 1, 2009. ”
This lead me to believe that the distribution had to be taken.
Permalink Submitted by Alan Spross on Fri, 2009-03-06 20:16
The 2008 RMD would have been required had he lived until 1/1/09, however he did not. In this situation, a sole surviving spouse can complete a rollover. In the year the surviving spouse completes the rollover in a year following the year of spouse’s death, they are deemed to to have owned the IRA all year. See Pub 590, p 36, “Surviving Spouse”.