Rollover IRA RMD
Active employed lady 65 passed away with a 401K- her spouse was bene. He rolled funds into a new rollover IRA and is 70 1/2 this year. Does he need to do an RMD this year or can he wait till this year. Terry
Active employed lady 65 passed away with a 401K- her spouse was bene. He rolled funds into a new rollover IRA and is 70 1/2 this year. Does he need to do an RMD this year or can he wait till this year. Terry
Permalink Submitted by Alan Spross on Mon, 2010-09-20 20:29
Spousal beneficiary does NOT need to take an RMD this year for the balance rolled over from the inherited 401k.
If survivor has his own IRA separate from this rollover, 2010 is an RMD distribution year because he turns 70.5 this year, but he can wait until 4/1/2011 if he wishes. His year end IRA balance on 12/31/2010 will now include the total of any IRA he had all along plus the 401k spousal rollover, and this balance will determine his 2011 RMD.