SECURE - spouse of deceased beneficiary - Ed Slott and Company, LLC

Submitted by Robert Vashko on Tue, 2020-07-14 16:52

Just checking myself here.

Non-spouse beneficiary inherits IRA pre-SECURE, and stretches. That original bene dies in 2020. SECURE states that successor bene must empty account in 10 years.

This out-in-10 rule applies even if the successor bene is the original bene’s spouse, correct? Successor bene cannot use “surviving spouse” status to continue the original bene’s stretch, right?

99.9% certain I am right, but just double-checking.

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Permalink Submitted by Alan - IRA critic on Tue, 2020-07-14 17:02

Yes, you are right. The 10 year rule will apply to the successor beneficiary, and the successor can never be treated as an EDB.
However, if the original beneficiary also passed prior to 2020, then the successor beneficiary can complete the LE schedule of the designated beneficiary. The 10 year rule will not apply according to most interpretations of Secure Act wording.