RMD in Year after death (Surviving spouse) Account not split as of 12/31
The situation: Client died at age 92 on 12/03/12. Her RMD had already been taken for the 2012 tax year. The account was not rolled over to the surviving spouse before year end. I’ve been told two things: 1. The 2013 RMD off of that balance can be ignored as long as it is rolled over at some point. 2. You have to add the 12/31 balance to the surviving spouses 12/31 balance and take the RMD based of his (?) life expectancy. What’s the truth?
Permalink Submitted by Alan - IRA critic on Sat, 2013-05-04 00:11
2 is correct. For 2013, the surviving spouse can maintain the decedent’s IRA as inherited and take the RMD on that basis, but this is a bad idea. If the surviving spouse does the rollover at any time in 2013, they are deemed to have owned the IRA all year and would take the total RMD as owner. The RMD would be lower as owner than as beneficiary, but either way there will be a 2013 RMD on the inherited balance.