RMD after 70 1/2 for spouse
A client died at the age of 82 and his wife is the sole beneficiary and is 78 years old. His RMD for 2011 is roughly 35k and he has already taken out 10k. The wife does not have her own IRA at this time. Since 25k still needs to come out of the deceased’s husband IRA to satfisfy his RMD, does the remaining 25k need to be taken prior to moving the account to the wife’s own IRA, or can we move all the proceeds right now to the wife’s IRA and then complete the remaining 25k RMD by December 31st?
Thank you.
Permalink Submitted by Alan Spross on Mon, 2011-04-25 20:37
If the surviving spouse takes a distribution, up to 25k is not eligible for rollover to her own IRA because it is the RMD for the year of death. However, if she just has the IRA re titled as owner without a distribution, the RMD can be delayed to the end of the year.
If the IRA custodian requires that she set up her own IRA and does not want to continue the same account number of the deceased spouse, if the custodian will treat that as a non reportable transfer, the RMD can be delayed until year end.