Spousal Beneficiary Question
Hello,
I have a client with a BDA she (64 in 2923) inherited from her spouse. Her husband was the original depositor. He would’ve turned 70 and ½ years old this year had he lived. I’m wondering if the Secure Act and SA2.0 makes it so that the account doesn’t need to take RMDs until the year in which the account (Husband) owner would’ve turned 73?
Thank you.
Permalink Submitted by Alan - IRA critic on Wed, 2023-03-22 20:57
Yes, if she maintains this as a beneficiary, her RMDs do not start until the year her husband would have reached 73. That said, being over 59.5 she should elect to assume ownership of the inherited IRA now since she will then have no RMDs until either age 73 or 75 pending IRS clarification for those born in 1959), yet if she needs to take distribution, she is beyond the penalty age. Again, all upside and no downside for assuming ownership of the inherited IRA.