clarification of when rmd needs to be completed
Client inherited her spouse’s IRA- Spouse died in 2009 age 82. Client did not elect to take the RMD distribution due to the waiver in 2009. The client rolled the IRA into her name in 2010 the prior custodian did not take RMD out before it was rolled this year. Is she required to take her RMD age 78 before the end of this year based on her husbands value or is it next year using this years end of value of the accounts?. She had no account value in her name as of last year. The account would have been in her husbands name and the 5498 I assume will be issued with his social security for last year.
Thank you
Permalink Submitted by Alan Spross on Sat, 2010-10-30 03:23
The surviving spouse will still have to take a 2010 RMD by the end of this year. Even though the IRA balance was in inherited form on 12/31/09, that account balance carries over in determining her RMD as the owner in 2010. She is deemed to have owned this IRA all year, regardless of the date she executed the rollover.
If she had not reached her RBD yet in 2010, she would not have to take an RMD for 2010.