RMD options for spouse and non spouse benes
I need to refresh my memory.
IRA in the name of John Doe. Beneficiary is the John Doe Trust. Only beneficiary of John Doe Trust is Mary Doe. John is now deceased. IRA has been placed in the name of Mary Doe (wife), with her TIN. John was 71 and receiving distributions before he passed. Since the owner died after RBD what options would the wife who is the beneficiary of the IRA via the trust have? What options would a bene have if not a spouse regarding RMD if owner died after RBD?
Thanks
Permalink Submitted by Alan Spross on Fri, 2009-06-12 22:57
Since the surviving spouse was apparently allowed to assume ownership of the IRA (check showing her SSN), the trust must have been allowed to terminate under it’s terms. As owner, the surviving spouse would be subject to RMDs based on her own age. If the trust beneficiary were a non spouse, non spouse could not do a rollover and RMDs would be based on non recalculated life expectancy of the non spouse, providing that the trust was qualified for look through treatment prior to termination.
Those requirements for trust qualification appear on p 39 of Pub 590. If the trust were not so qualified, the non spouse beneficiary would have to take RMDs based on the non recalculated remaining life expectancy of the deceased owner.
Permalink Submitted by Linda Randazzo on Sat, 2009-06-13 00:12
Thank you!