distribution from IRA before spousal rollover
My client passed away and he was 71. I am just confirming that we need to do his RMD before his spouse can rollover his IRA account into her IRA account.
My client passed away and he was 71. I am just confirming that we need to do his RMD before his spouse can rollover his IRA account into her IRA account.
Permalink Submitted by Alan Spross on Mon, 2011-05-23 20:28
If a distribution and rollover will be used to get the funds into the surviving spouse’s IRA, then the RMD needs to be taken out first.
However, if this is being done by a TtoT transfer with no check payable to the surviving spouse, the RMD can be postponed until the end of the year. But unless you are totally sure that the IRA custodian is not going to issue a 1099R, you should play it safe and take out the RMD first. In many cases it will be very difficult to determine with any reliability that the IRA custodian is not going to issue a 1099R.