Death after RBD

Submitted by Wendy Mommaerts on Wed, 2016-01-27 16:04

We have a client that is 72 and just passed away without satisfying his 2016 RMD (spouse is the sole beneficiary). spouse is looking to transfer these funds into her IRA and then withdraw her deceased husbands 2016 RMD. Would this be an issue? Does the spouse have to withdraw the RMD prior to the funds being transferred into her own IRA?

Also, quick question…if the client turns 70 1/2 in December 2016 and passes away before 70 1/2, I am under the impression that since he passed away prior to 4/1/2017 there is no RMD for the deceased?



Submitted by Alan - IRA critic on Wed, 2016-01-27 17:06

  • If the spousal rollover is done as a non reportable transfer, the RMD can be taken later in the year. But if there is a distribution to be reported on a 1099R, the RMD cannot be included in the rollover because an RMD is not eligible for rollover.
  • Regarding second question, that is correct. There is no RMD for the year of death if IRA owner passes prior to the RBD. In other words, the death prior to RBD changes an RMD otherwise required in the first RMD distribution year to an unrequired RMD.


Submitted by Wendy Mommaerts on Wed, 2016-01-27 17:40

This would be a trustee to trustee transfer from the deceaed IRA to the Spouses own IRA.  So what you are saying is that the spouse would have to w/draw the deceased 2016 RMD prior to moving the IRA account into her own IRA?    



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