RMD table to be used for an EDB (Spouse Beneficiary)

Submitted by Roshan Jagsi on Mon, 2023-06-05 16:58

In 2015, the sole survivor spouse beneficiary assumed RMDs from deceased husband’s custodial IRA. He was 80 when he passed on and the spouse beneficiary is 2 years younger. The husband was receiving RMD under Uniform Life Table.
Which table should be used by the surviving spouse for continuing receiving RMD? Uniform table or Single table?

Will appreciate your answer.



Submitted by Alan - IRA critic on Mon, 2023-06-05 18:55

  • If she either elected to assume ownership OR failed to complete the single life table RMD as a beneficiary resulting in defaulting to ownership status, the Uniform Table applies, and produces a much lower RMD than the single life table. 
  • Complicating these rules is a Secure Act change restricting assumption of ownership, although it is not clear whether that affects the default rules or not. If ownership cannot be assumed, the spouse would have to take a distribution and do a 60 day rollover to her own IRA of the amount in excess of the single life table RMD for the year. The two negatives here are possibly not having a rollover available, and also that the RMD for the year this is done would be the higher single life table RMD of a beneficiary. The Uniform Table could not be used until the following year.
  • Therefore, the first thing to do is determine if the spouse has assumed ownership OR defaulted to ownership in some prior year. That would result in the Uniform Table applying to that year and all subsequent years. Given their ages, the spouse should have elected ownership right after inheriting, and to reduce RMDs no later than 12/31/2016. If that had been done the single life table  would never have applied.

Submitted by Roshan Jagsi on Mon, 2023-06-05 19:54

Thank you so much, Alan.Keeping in mind the above situation, which one would better for the 87 year old spouse beneficiary, who favors Roth and hopes she survives 5 year rule (in pretty good health so far) for her beneficiary who will inherit Roth tax free.1. If the spouse beneficiary already has a Roth account that is 25 year old, would the 5 year rule apply for the new conversion?2.  Would it be better to open a new Roth for this new conversion be a better idea because of her age, so the nedb beneficiary can wait till it completes 5 year rule for taxfree withdrawal?3. Any advice on Pros and cons of the conversion to Roth at this age?Thanks again. 

Submitted by Alan - IRA critic on Mon, 2023-06-05 20:19

  1. Her Roth is qualified and there are no additional 5 year rules in play. Any conversion done now can be distributed tax and penalty free anytime by the surviving spouse or her beneficiary.
  2. No need at all for a separate Roth IRA. 
  3. At this age, unless the surviving spouse has an abnormally low taxable income year perhaps from high deductions, any conversion would be primarily for the benefit of a beneficiary if that beneficiary has a higher tax rate than the surviving spouse. Any RMD must be completed before converting an additional amount. 

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