a spouse passes away and has certiciates of deposits and 401k account how does it get transferred to surving spouse
what happens to the RMD for the year that a spouse passes away, does the surviving spouse still have to withdraw the RMD for the spouse that passed away that year.
or does the transfer of assets that go to the surviving spouse gets added to their account values for the following year
rmd
once the assets are rolled over to the surviving spouse the RMD for the new value is it still over their lifetime cycle or is it accelerated under the secure act
if adult children are the beneficiaries under the new secure act do they have to take a RMD over the ten year period or their lifetime and when passing it over to the children what are the special wordings that have to happen so it transfers over without and tax consequences in the year of receiving their inheritance
Permalink Submitted by Alan - IRA critic on Tue, 2021-03-09 18:14
If a spouse passed in 2020, there is no year of death RMD since all 2020 RMDs were waived. If the spouse passed in 2021 and did not complete their 2021 RMD, the surviving spouse beneficiary must complete that RMD by the end of 2021. Starting in 2022, the surviving spouse will have to take RMDs either as beneficiary or as owner if the spouse assumed ownership of the inherited IRA. If the surviving spouse does not do the spousal rollover, they would have beneficiary RMDs over their single life expectancy for which they remain eligible under the Secure Act. Generally, unless the surviving spouse is under 59.5, they should do the rollover to their own IRA. Non spouse beneficiary children of the decedent will have to drain any inherited IRA in 10 years, unless they are disabled, and would then be able to use Table I, single life expectancy. A 401k account cannot be assumed by the surviving spouse, it must be rolled over to a beneficiary IRA or owned IRA, or retained in the plan subject to RMDs. This post does not address assets not in a retirement plan, such as non IRA CDs.