RMA’s for spouse’s beneficiaries

Submitted by Morton Speck on Fri, 2010-12-03 19:18

Can the beneficiaries of my wife’s IRA (inherited from me) receive stretch RMA’s or is their RMA based on her life expectancy at her death?

Thanks.

Mort Speck



Submitted by Alan Spross on Fri, 2010-12-03 20:07

There are several different answers depending on the details and also the ages of both decedents.
Could you post which spouse dies first, whether surviving spouse continues inherited status or assumes ownership, and if first spouse passes prior to age 70.5 or before. These detail affect what stretch other non spouse relatives would have.



Submitted by Morton Speck on Sat, 2010-12-04 01:03

In response to Alan-Oniras questions, this is the scenario:
I’m currently 80, and my wife is my beneficiary. At my death, she appoints our two sons as beneficiaries. Upon her death, can RMD’s be based on the age of the older?

Thanks.

Mort



Submitted by Alan Spross on Sat, 2010-12-04 01:56

Assuming your wife is at least 59.5, she should either assume ownership or roll over your IRA to her IRA upon your death. She would then be the IRA owner, and no longer treated as the beneficiary. She should also immediately name the sons as beneficiary. Upon her passing, the sons can each use their respective ages to calculate their life expectancy RMDs if they create separate accounts by the end of the year following the year of her death. If they fail to create the separate accounts, then they both have to use the life expectancy of the OLDEST son for their RMDs.

Note that your wife’s RMDs will be lower by assuming ownership than by remaining as beneficiary, and this also protects the sons from having to continue her RMDs rather than using their own life expectancy.



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