Traditional IRA Beneficiaries Choices
Hello,
I am a 79 year old individual with a traditional IRA that has my spouse as sole beneficiary. My spouse is 1 year younger than me. Upon my death, what are the inheritance choices that my spouse has regarding how to take control of the inherited account and when, if ever, would SHE be required to take RMD’s? Thank you.
Robert S.
Permalink Submitted by Alan - IRA critic on Wed, 2025-01-08 16:30
Based on your ages, your spouse should elect to assume ownership of your IRA if you pass first. She will then be able to use the Uniform Table for her age starting in the year after you pass because she is also over her RMD age. If she already has her own IRA, after assuming ownership of yours, she could combine them by direct transfer.
If you did not complete your RMD before passing, she has until the end of the following year to take the rest of your RMD but should probably take it before the end of the year in which you pass because that will be the last year she can file a joint return. You should also remind her to name her own beneficiary ASAP. Electing to assume ownership is a non reportable event, with no 1099R issued or need to report it on her tax return.
Too often, surviving spouses over 59.5 continue to maintain the deceased spouse IRA as an inherited IRA for too long, as this increases their RMD and has negative consequences for the beneficiary that the surviving spouse will name.