RMD IRA in divorce
If I am over 70.5 years and my IRA is in RMD mode. If I am getting a divorce — and as part of the divorce agreement I would like to give my wife my IRA assets. Can I do this while my IRA in RMD mode? If yes — would I just simply transfer the remaining IRA assets to her? After the the transfer — if she is over 70.5 — she needs to start RMD withdraws according to her age?
Permalink Submitted by Alan - IRA critic on Fri, 2019-03-08 15:42
In the year of the transfer of your IRA (or portion thereof), you are still responsible to distribute the RMD for that year. If your entire IRA is being transferred per the divorce decree, you must complete your RMD prior to the transfer. The decree should clarify whether you can keep the RMD or must also transfer the RMD to your spouse. You will owe tax on the RMD. For years after that, your spouse will be responsible for completing the RMDs calculated according to her age.