RMD for Spousal IRA
My client died in November, 2010 at the age of 88. He listed his wife as his primary beneficiary. She is age 86. What method do I use to calculate the RMD for his widow?
My client died in November, 2010 at the age of 88. He listed his wife as his primary beneficiary. She is age 86. What method do I use to calculate the RMD for his widow?
Permalink Submitted by Alan Spross on Wed, 2011-01-19 17:56
Assuming that your client took out his 2010 RMD prior to passing, his surviving spouse should assume ownership of the inherited IRA. For 2011, her RMD divisor will be based on the age she will attain in 2011 (86 or 87). Table III applies.
If his 2010 RMD was not completed, she needs to take out the remainder of that ASAP as well, and waiver of the penalty should be requested on their 2010 joint tax return using Form 5329 and an explanatory statement regarding his death.
She also needs to name her own successor beneficiary on the account. If she has her own IRA, she can also roll the inherited IRA into her own IRA.
Permalink Submitted by Walter Bond on Wed, 2011-01-19 19:46
Her RMD life expectancy calculation is based on the Uniform Lifetime Table, right?
Permalink Submitted by Alan Spross on Wed, 2011-01-19 21:13
Yes. Table III is the Uniform Lfetime Table. It applies only if she assumes ownership or rolls the inherited IRA over to her own IRA.
If she does not, and wishes to continue as beneficiary (not a good choice in this situation), she would then use Table I (SIngle LIfe Expectancy).