spouse over 70 1/2 inherits IRA from spouse not yet 70 1/2
An IRA owner already taking RMDs inherits his deceased spouse’s IRA (she was in her late 60s and therefore not yet taking RMDs). She died in late 2007 and the money moved into his IRA in early 2008.
What is his RMD obligation for 2008?
Permalink Submitted by Alan Spross on Mon, 2008-02-25 20:39
His 2008 RMD is not affected by the spousal rollover because it was not part of HIS account balance on 12/31/07. His RMD would be the same as it would have been prior to the rollover, and will not increase due to the spousal rollover until 2009.
This is also the time to check on whether his spouse had any basis in her IRA due to non deductible contributions or after tax employer rollovers, each of which should have resulted in a Form 8606 filing. He would then acquire any unrecovered basis and it would be added to any basis he already had in his own IRA. Of course, this would result in a lower portion of each distribution being taxable. Also, he should re visit his beneficiary designation ASAP.