Client inherited spouse IRA 3/2021 (spouse died 11/2020)
Husband passed away 11/2020
We have a client who inherited her husbands IRA and transferred the husbands IRA to her own IRA March 2021.
Do we add the husband’s 12/31/2020 acct bal to the wife’s IRA balance to recalculate the wife’s 2021 RMD.
Permalink Submitted by Alan - IRA critic on Tue, 2021-04-06 18:04
Yes. The wife is treated as having owned the inherited IRA the entire year of 2021. While somewhat confusing, it is assumed that also means the 2020 year end balance must be added to her already owned TIRA balance to calculate the 2021 RMD. Of course, there is no year of death RMD issue since all 2020 RMDs were waived by the CARES Act.