Divide IRA into two, one for EDB one for non-EDB?
Can I divide my IRA into two IRAs, make my child the beneficiary of one and my eligible designated beneficiary (EDB) younger wife the sole beneficiary of the other, so that lower RMDs can be taken out of the second IRA during my lifetime and when I pass, she can then roll the inherited IRA over into her own IRA?
Permalink Submitted by Alan - IRA critic on Fri, 2021-07-02 23:26
Yes, you could partition your IRAs with different beneficiaries. While you remain living, your RMD would only be lower if your wife is more than 10 years younger than you, and only for the account on which she is the sole beneficiary. If you partition the IRAs, upon your death your wife can elect to assume ownership of the account on which she is beneficiary at anytime. Even if not split she could still do a direct transfer of her share to her own or inherited IRA, but she could not elect to assume ownership.