RMD for Surviving Spouse – when to begin taking?
H dies in 2008 and was already taking RMD’s. We took out H’s RMD for 2008 and paid it to his spouse (W), the primary beneficiary in H’s QP.
W has decided not to roll QP proceeds into her own IRA. Her financial planner indicated to me that she does not have to take out an RMD for 2009 as it has been “suspended” for 2009.
Question: when does W, as surviving spoue, have to take out her RMD? And, I assume the RMD would be based on the remaining life expectancy of H, or can she use her own life expectancy?
Am I missing something regarding the RMD starting date? I thought she needed to begin taking out RMD’s for 2009. Can she wait until 2010 and any cites would be appreciated.
Thanks in advance for any help.
Regards,
Rob Gilbreath
Attorney and Counselor at Law.
Permalink Submitted by Alan Spross on Mon, 2009-01-12 19:21
Rob,
Since husband apparently passed after his RBD, his surviving spouse can take RMDs over the longer of her life expectancy or that of her husband.
The planner is correct that her 2009 RMD is waived. Her 2010 RMD will be based on her age as of 12/31/2010 using the 12/31/2009 account balance. In the event her husband’s life expectancy is longer (wife is older), his would be attained age in 2008 would be used for the table divisor, and 2.0 would be subtracted, 1 for the waived 2009 and one for 2010.
It may eventually turn out that the 1.0 subtraction each year for the divisor in the latter case will result in a higher RMD than if she rolled the QRP Plan into her own IRA. Rolling it over will also provide a better stretch for her successor beneficiary in most cases.
Following is a link to the IRS Release about the 2009 RMD waiver:
http://www.irs.gov/pub/irs-tege/rne_se0109.pdf