82 year old IRA to 69 year old wife
A client recently died – he was 82 and had an IRA. His wife is 69. When we transfer it to her name, does she take the RMD based on his age or her age? Thanks
A client recently died – he was 82 and had an IRA. His wife is 69. When we transfer it to her name, does she take the RMD based on his age or her age? Thanks
Permalink Submitted by Alan Spross on Tue, 2011-02-08 18:28
It depends on the year the RMD is for. If client died in 2010 (or 2011) before taking out his full RMD, his wife must take out that RMD as soon as practical using his age and prior account value. For years after his death, if his spouse assumes ownerhip of the IRA, she is deemed to have owned it the entire year. She does not have to take an RMD until the year she turns 70.5 and can delay that first RMD to her required beginning date.
Remember to check to see if he had any basis in his IRA. Any unrecoved basis in inherited by his wife and she can report in on Form 8606.