RMD FROM 401K OF DECEASED SPOUSE

Client’s spouse (age 79) passed away in July 2024 and had yet to take his 2024 401k RMD of $20,000. The plan has updated the ownership to his spouse, also age 79. the plan requires the spouse move assets from the plan in 90 days.

I’m aware a 401k RMD must be taken from 401k and not an IRA but is there an exception in this case?

The wife would prefer to take the 401k RMD from her IRA once rollover from 401k plan occurs to avoid  Federal tax witholding which 401k plan would require 20% Fed withholding.