Spouse Inherits IRA and 401K Under Age 59 1/2 – Inherited IRA RMD?

Submitted by John Boardman on Tue, 2013-01-22 14:33

I seem to be be getting conflicting answers to this question from CPA and attorney. Any advice would be greatly appreciated.

-Wife under age 59 1/2 inherits a 401k and IRA from husband in which she is named sole bene.

-She funds two inherited IRAs to allow access prior to age 59 1/2 with no penalty.

Questions #1: Can she wait until her deceased husbands age 70 1/2 to take her first RMD? He was ten years older.

Question #2: If she takes a distribution prior to age 59 1/2 or her husbands age 70 1/2, the attorney has advised her that she has to keep taking them every year going forward. I.e. she starts at age 58, she has to keep taking RMDs going forward based on her life expectancy (single life table). I was not aware of this and this sounded like 72t treatment to me being applied to a spousal inherited IRA. She funded two IRAs thinking that if she had to keep taking from one, she could leave the other alone.

Any guidance here would be appreciated.



Submitted by Alan - IRA critic on Tue, 2013-01-22 17:20

  • 1.   Yes, as sole beneficiary her first RMD year is the year he would have reached 70.5. If she rolls the IRAs over in that year, she is deemed to be the owner the entire year, and the beneficiary RMD can be avoided.
  • 2.   The attorney is incorrect. Before her RMDs start, she can take out any amount she chooses to or nothing in each year. Perhaps he was thinking 72t treatment, but of course there is no penalty on inherited IRA distributions in the first place, so a 72t plan is unnecessary. She does not need two inherited IRA accounts.

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