Beneficiary of an inherited IRA Dies – What are the options.
Steve names his brother Jeff as the beneficiary of his IRA. Steve dies in July before RMD’s (he is in his 60s). Jeff puts it in the Steve Jones IRA for the Benefit of Jeff Jones (64) and names his wife Sue as the beneficiary. Jeff dies in September.
They question is, over what period does Sue have to withdraw the IRA.
Permalink Submitted by Alan Spross on Tue, 2007-11-20 21:38
As successor beneficiary, she uses the remaining single life expectancy as Jeff would have used based on what his age would have been in 2008. She should re title it by adding Jeff as second decedent, name her own successor beneficiary and add her SSN. (Pub 590, p 36)
Above all, she should be warned NOT to attempt to roll this into her own IRA or convert it to a Roth, and if she moves the funds, it must be by direct transfer only. Her first RMD is due no later than 12/31/08.