Longer of Rule and Surviving Spouse
IRA Owner names spouse as beneficiary. IRA owner dies post RBD. Does surviving spouse take annual distributions based on the longer of the IRA Owner’s life expectancy or the spouse’s life expectancy, or does the surviving spouse take annual distributions based on his/her own life expectancy? In other words, does the longer of rule apply to a surviving spouse?
If the longer of rule applies, would the shorter of rule also apply? 100% distribution by the end of the surviving spouse’s life expectancy.
Permalink Submitted by Alan - IRA critic on Wed, 2023-04-05 19:08
The rule can be used by an older surviving spouse, who could use the deceased spouse’s longer LE, but would still have to drain the inherited IRA in the year the surviving spouse would have had to (shorter of rule). In reality, the surviving spouse would be better off doing the spousal rollover unless they were much older than the decedent.