Spouse inherits IRA from her husband before his RMD date
I have a client who’s husband passed away in 2012 at the age of 69. He had a CD IRA that didn’t mature until August of 2013. She has left it there with his name on it up to this point. The CD has now matured and she would like to roll it over into a new CD IRA in her name. However, her husband would be 70 1/2 now. Is she required to take any RMD? She is 63. My first answer was no, she can roll it over into her own IRA and not be required to take any RMD until she reaches 70 1/2. Is this correct?
Permalink Submitted by Alan - IRA critic on Wed, 2013-09-11 20:18
You are correct. If she left it titled as the beneficiary she would have to take her first RMD this year. However, if she rolls it over to her name before year end, she is treated as if she owned the IRA the entire year and will not have to take an RMD this year or until she reaches 70.5. Technically, even if she does nothing and fails to take her RMD as beneficiary, by default she is treated as the owner of the IRA anyway.