RMD requirement for spousal inherited ira
Does a spouse who elects an “inherited ira” from her deceased spouse’s 401k, rather than a rollover into her own IRA (she’s 44), have to take RMD’s from the inherited IRA as she would if she were a non-spouse beneficiary?
Also, do NUA rules still work the same as normal?
Permalink Submitted by mk foss on Wed, 2010-06-16 16:22
A surviving spouse who inherits an IRA can defer RMDs until the deceased spouse would have reached 70.5. So if for example, the deceased spouse died at age 60 – no RMDs would be required for 10 years. However, the spouse could withdraw funds from time-to-time without the 10% penalty.
Permalink Submitted by Alan Spross on Wed, 2010-06-16 20:02
With respect to the NUA question, NUA can be used by a 401k beneficiary subject to the same rules that would have applied to the employee. Options include taking a LSD that includes NUA stock with other assets being rolled to an inherited or owned IRA by a surviving spouse. Of course, any shares that are transferred to an IRA irrevocably forfeit NUA treatment.
Any NUA shares distributed also count toward any RMD due for the year of distribution.