Does a Spouse have to RMD’s on a decendant IRA?
IRA owner is 70 1/2 and will be taking his first RMD. He also has a brain tumor that is terminal. His spouse and IRA Bene is 52. Can she roll his IRA into hers or will she have to Strecth his IRA over her lifetime?
Permalink Submitted by Edward Czapor on Thu, 2008-06-19 16:04
She can do either option. If she is the sole beneficiary, she can choose to remain a beneficiary and be subject to RMD’s. This may be her best choice if she needs access to the IRA funds which can be withdrawn without penalty. She would usr the single life table with the ability to recalculate. That is using a new factor based on her age for each year rather than a set term. She also could roll the IRA to her own at any time prior to age 591/2 to stop RND’s, or continue to age 591/2 when the account should be rolled over to her own. At that point she would no longer be subject to penalties, and could withdraw as needed. Also note that since she is more than 10 years younger than her spouse, he should use the joint and survivor table for his RMD.
Ed C.