RMD Client Death / Continue RMD+ for Spouse
Recently passed client taking RMD’s. Just short of 2024 RMD requirement. Spouse is primary beneficiary of the IRA and will continue the same withdraw schedule which is larger than annual RMD requirement. What is the easiest way to handle? Thank you
Permalink Submitted by Alan - IRA critic on Fri, 2024-04-26 15:09
The spouse must complete the balance of the 2024 year of death RMD whether spouse assumes ownership or decides to continue as the beneficiary. This can be done either from the inherited IRA (transferred into a new inherited IRA for the spouse) or from spouse’s own IRA. Since the withdrawals are more than the 2024 RMD, the year of death RMD will be easily completed. There is no special tax reporting for this. However, in 2025 depending on the age of the spouse and whether ownership is assumed, the RMD will change. If spouse is over 59.5 and will need the current distributions to continue, there is no reason not to assume ownership.
Permalink Submitted by David Berdow on Fri, 2024-04-26 18:31
Thank you