Spouse elects to use Bene IRA
A client sadly passed at the age of 36. His wife has decided to move funds into a BENE IRA in her name. Is she required to take mandatory RMD’s each year? If she decides to take RMD’s based on her single life expectancy, can she stop distributions at any time or once she starts, she cannot stop? Can she convert it to a Traditional IRA and if so, is there a time limit on that?
Permalink Submitted by Alan - IRA critic on Thu, 2023-06-22 21:11
The sole surviving spouse beneficiary is not required to take beneficiary RMDs until the year husband would have reached age 75, but she can take non RMD distributions as needed without penalty in the meantime. She can also roll over any distributions she wants to her own Roth IRA without time limit.