Spousal Rollover in 2010, Owner died in 2009
My client’s husband died in Sept 2009. She was the primary beneficiary of the IRA and the three children are the contingent beneficiaries. The attorney was debating if the wife, my client, should disclaim the IRA to the children. Now it has been decided that it is okay for her to roll the deceased husband’s IRA into her own IRA. She is out of town until January 8th. Does she have to take a 2010 RMD from the IRA before it is rolled over?
Permalink Submitted by mk foss on Mon, 2009-12-28 22:50
Was the deceased spouse receiving distributions because he was over 70.5?
Permalink Submitted by [email protected] on Tue, 2009-12-29 15:32
Yes, he had been taking RMDs but he didn’t take one in 2009 because it wasn’t mandatory.
Permalink Submitted by Alan Spross on Tue, 2009-12-29 18:00
Since the election to assume ownership is not being made in the year of her husband’s death, she will be considered to be the IRA owner for the entire year of 2010. If she is subject to RMDs in 2010, she has until year end (or RBD if later) to take the RMD, but if she does not turn 70.5 by 12/31/2010 then no RMD is required for 2010. Even if there is a 2010 RMD requirement, it is not required at the time of re registration or rollover of the account.
Note: Due to the 2009 RMD waiver only, she could also have assumed ownership in 2009 without an RMD.