IRA Death of spouse
The designated beneficiary of the deceased is the spouse. Upon her death, the couple’s children are the beneficiaries. What are the options if any of the children to stretch out the distributions from this inherited IRA?
The designated beneficiary of the deceased is the spouse. Upon her death, the couple’s children are the beneficiaries. What are the options if any of the children to stretch out the distributions from this inherited IRA?
Permalink Submitted by Alan Spross on Tue, 2009-06-02 05:00
1) If surviving spouse assumes the IRA as their own or rolls it over to own IRA and names the children as primary beneficiaries, the children will be able to use their life expectancy for RMDs.
2) If surviving spouse maintains the IRA in inherited form and names the children as successor beneficiaries, upon surviving spouse’s death:
a.) children must continue surviving spouse’s RMD factor less 1.0 each year if survivor passes on or after the year original owner spouse would have reached 70.5.
b.) children can use their own life expectancies if surviving spouse passes prior to the year the original owner spouse would have reached 70.5.