Spousal Benficiary RMD for Year of Death
If a Surviving Spouse is less than 10 Years younger DOB 10/2/1950 than the Deceased Spouse’s DOB 10/7/1940, am I correct that we should change ownership of the Deceased Spouse’s IRA to the Surviving Spouse and take the 2021 RMD calculated on the Surviving Spouse’s 2021 age using the Uniform Table. Then transfer the Deceased Spouse’s IRA to the Surviving Spouse? How long should we wait to transfer the funds?
Thank you!
Permalink Submitted by Alan - IRA critic on Fri, 2021-04-23 14:29
A spousal beneficiary is an EDB regardless of age difference. For deaths in 2021, the year of death RMD must be completed by the surviving spouse by year end if not completed by decedent. That RMD is determined as if deceased spouse lived the entire year. For subsequent years, if the surviving spouse assumes ownership of the inherited IRA, they are treated as having owned it the entire year, and in that year they would use the Uniform Table and the prior year end balance to calculate the RMD. The inherited IRA can be assumed by the surviving spouse in the year of death and the year of death RMD taken anytime by year end, but the RMD amount is not affected by the ownership change until the following year. Surviving spouse’s first RMD year as owner will be 2022 using Uniform Table and age 72.