Spousal beneficiary
T-IRA owner died in 2022 at age 84
Surviving spouse (younger), age 80, 100% primary beneficiary
IRA custodian set up an inherited IRA (e.g. surviving spouse as beneficiary) – CPA think its in the best interest of the surviving spouse to have the IRA registered in her name (as account owner)
Question:
How are RMDs determined? I am getting conflicting information re: whose life expectancy is used and which LE table is used for each of following situations:
(1) When a surviving spouse is beneficiary (e.g. inherited IRA) versus
(2) making the IRA her own (e.g. retitle as her own)
Thank you in advance
Permalink Submitted by Alan - IRA critic on Tue, 2022-09-13 19:13
CPA is correct. The surviving spouse should elect to assume ownership of the inherited IRA. Surviving spouse will then use the Uniform Table starting in 2023 and her RMDs will be much lower than if she continued with the inherited IRA. However, the 2022 RMD of the owner must be completed in 2022 if the owner did not complete it before passing. This can be done either before or after the surviving spouse assumes ownership.
Permalink Submitted by ShipsnGiggles on Wed, 2022-09-14 15:43
would the surviving spouse RMDs be determined? Single life table – not recaluclated?
Permalink Submitted by Alan - IRA critic on Wed, 2022-09-14 15:50
Starting in 2023, if the surviving spouse assumes ownership of the inherited IRA, their RMD is determined using the Uniform Table each year with new attained age, which automatically includes recalculation. The single life table would not apply.