Inherited IRA- 2 benes, 1 spouse, 1 non-spouse
I am interested in the non-spouse beneficiary who will be looking to do a direct transfer into an inherited IRA.
If the spouse either assumes ownership, stretches the IRA or rolls into his own IRA we are unclear.
The question is- does the non-spouse bene adult child base her RMD on her own age even though there were multiple beneficiaries? Regardless of what the spouse does? The decedant was pre-70.5.
Permalink Submitted by mk foss on Tue, 2011-05-10 16:50
If a nonspouse beneficiary has their share transferred to a beneficiary IRA by December 31 of the year after the death of the original owner, the beneficiary can use their own life expectancy for their RMDs. Once the nonspouse beneficiary’s share is gone, the spouse beneficiary is the sole beneficiary of the inherited accunt and can roll over the benefits to an account of his or her own.
The non-spouse beneficiary begins RMDs in the year after the death. The spouse (if she/he does a rollover) can wait until she/he is 70.5. If they need money earlier, they shouldn’t roll it over immediately, they can take distributions as a beneficiary from time to time but none are required until the original owner would have reached 70.58