RMD for Inherited Spousal TIRA

Submitted by Herm Brames on Wed, 2015-10-14 13:45

Husband passed at 61 years of age and spouse, age 61 inherited his TIRA. Bank is requiring a MRD on the Inherited IRA on an annual basis. Is this correct and where in the IRS Regulations is it so stated.



Submitted by Alan - IRA critic on Wed, 2015-10-14 20:39

It is NOT correct. If the surviving spouse is the sole designated beneficiary for the IRA, RMDs do not begin until the end of the year her husband would have reached 70.5. This is stated in IRS Reg 1.401a(9)-3, Q&A 3 as follows:

(b) Spousal beneficiary. In order to satisfy the rule in section 401(a)(9)(B)(iii) and (iv), if the sole designated beneficiary is the employee’s surviving spouse, distributions must commence on or before the later of—(1) The end of the calendar year immediately following the calendar year in which the employee died; and(2) The end of the calendar year in which the employee would have attained age 701/2.



Add new comment

Log in or register to post comments