Beneficiary IRA
Had a question that I am not 100% clear on.
Facts:
IRA donor born in 1917 dies in 2007. Daughter (born 1948) inherits the IRA and has been taking distributions based on her life expectancy.
Daughter dies in 2013. Husband (born 1948) inherits the IRA.
Does he now have to take distributions based on his life expectancy?
Permalink Submitted by Alan - IRA critic on Wed, 2013-12-04 16:09
No. The husband of the deceased beneficiary must continue the life expectancy RMDs of his wife. His life expectancy is not used. Daughter established her first divisor based on her age in 2008, and that divisor is reduced by 1.0 each year and the husband will now continue to reduce that divisor by 1.0 each year. In other words, his RMD will be the same as his wife would have taken had she lived. Husband also cannot assume ownership of the IRA because he is not inheriting from the owner, but from a non spouse beneficiary.
Permalink Submitted by Stephen Aponte on Wed, 2013-12-04 16:17
Thank you!