Spousal IRA inheritance 2021-deceased spouse not 70 1/2
Husband 69 dies leaving IRA assets to spouse as beneficiary-April 2021. Wife 74 accepts rollover to IRA in her name. She had no IRA assets only a small 403b she’s been taking RMD’s from. Is it correct that she will need to begin RMD in 2022 on the assets she just inherited and rolled into the IRA in her name? For Roth conversion purposes-is it correct she’ll be in a joint tax in 2021 and head of household 2022 and 2023?
Permalink Submitted by Alan - IRA critic on Wed, 2021-10-20 01:04
Yes. If wife had maintained the inherited IRA, she would not have to start RMDs until the year husband would have reached 72. However, due to the spousal rollover she will have to start RMDs on the increased value of her IRAs in 2022, based on the 12/31/2021 balance.
She can file a joint return for 2021, but in 2022 she will have to either file as single or HOH if she qualifies for HOH. That is fairly rare for senior taxpayers.