Inherited 403 B options
My client is 74. His wife is 69 this year (DOB is 7/29/1952). Wife died January 2021 with a 403 B. What are my client’s options, assuming he does not need additional income.
He has a defined Benefit plan and IRA’s. Approximately $1,000,000 in each. Also working earning $250,000.
Thanks
Permalink Submitted by Alan - IRA critic on Fri, 2021-09-10 21:02
As a sole spousal beneficiary he can delay RMDs until the year his wife would have reached 72, which is 2024. He must keep the plan in inherited status until 2024 when he should roll it over to his own IRA. As the IRA owner, while he will still have to take RMDs from 2024 and beyond, he can use the Uniform Table which produces a much lower RMD than the table a beneficiary must use.