20 year young spouse transfer over entire balance, what age is used for year of death RMDs
What happens when these two events collide?
• A spouse beneficiary is allowed to transfer the entire balance of their deceased spouses IRA (including RMDs) when they make the IRA their own.
• If a Traditional , SEP, or SIMP:LE IRA owner dies ON OR AFTER their required beginning date, death RMDS are based on the longer of the life expectancy of the designated beneficiary or the deceased IRA owner.
Question: Surviving spouse takes over the deceased spouses IRA. The surviving spouse is 20 years younger. Do they have to take the death RMDs on the deceased longer life expectancy or can they take the year of death RMDs on their shorter life?
Permalink Submitted by Alan - IRA critic on Tue, 2014-03-18 17:59
The year of death RMD of the decedent must be distributed to the beneficiary. A spousal beneficiary can either take that RMD from the inherited IRA before rolling it over or after it has been rolled over. But this is the decedent’s RMD, so it is based on the decedent’s age that would have been attained in the year of death. For years after the year of death, the RMD will be determined by the age of the surviving spouse if they roll it over or even if they maintain the IRA as an inherited IRA.