IRA required distribution after death
A man died on January 6 2010. He would have turned age 71 in October of 2010. His spuose is 68 years of age. Prior to transferring his IRA’s to her, is there a distribution required? If so based on what life expectancy. Is there a difference if the IRA is transferred to somone other than his spouse? When does the transfer have to take place? What is the proper way to title the new IRA?
Thank you very much!!!
Permalink Submitted by Alan Spross on Wed, 2010-02-24 23:58
IRA owner died prior to his required beginning date. The surviving spouse can roll over or assume ownership of the IRA and avoid an RMD for 2010 by taking action prior to 12/31/2010. Since the spouse is 68, this would be the obvious choice to make. The IRA would be entirely owned by the surviving spouse and registered as such with no reference to the decedent.
If the beneficiary was a non spouse, there would be no 2010 RMD required, but the non spouse would have to take RMDs starting in 2011 based on the beneficiary’s life expectancy.