Non- Spouse beneficiary IRA
Non- Spouse beneficiary inherites Aunts IRA. He names his spouse primary beneficiary and children contingent. He dies and wife continues with inherited IRA using his life expectancy for RMD. When wife passes can kids stretch according to original non spouse beneficiaries remaining life expectancy or other stretch options? Any comments and reference materials on this topic would be helpful. Thanks
Permalink Submitted by Alan - IRA critic on Thu, 2014-04-03 16:46
Once an IRA is inherited by a non spouse, the life expectancy of the beneficiary continues to apply no matter how many other successor beneficiaries inherit the IRA account before it is drained. Husband’s life expectancy would therefore continue to apply to the children as it did to his wife. It also follows that when husband passed the wife was NOT able to roll this over to her own IRA. See Pub 590, p 37, “Death of a Beneficiary”.