RMD for deceased spouse
Is an RMD required in the year a spouse deceases? I have a client that lost her husband in September of 2013. His IRA was rolled to her IRA account after his death in 2013. The RMD on her account for 2013 was calulated on the 12/31/2012 balance. Therefore, no funds were withdrawn from the deceased spouse in 2013. We were told that the RMD for the wife would be recalulcated to take into account the higher balance for the 2014 distribution. I would like to verify that this is correct.
Permalink Submitted by Alan - IRA critic on Mon, 2014-02-24 19:34
What was the age of decedent at the end of 2013?
Permalink Submitted by Florence Brown on Mon, 2014-02-24 20:59
The decedent is 80
Permalink Submitted by Alan - IRA critic on Mon, 2014-02-24 22:48
The client handled her own 2013 RMD correctly, However, the decedent had a 2013 RMD that may or may not have been completed before his death. If not, his spousal beneficiary should have completed that RMD by 12/31, and needs to file a 5329 to request waiver of the penalty if decedent’s 2013 RMD was not satisfied. The IRS almost always waives the penalty. She then needs to complete decedent’s 2013 RMD ASAP. Her own RMD for 2014 will be based on the actual combined IRA balance on 12/31/2013.