Deceased Client of RMD Age with Lump Sum Distribution
Hi All,
We have a client that was in his mid 70’s and was required to take an RMD from his IRA. Three weeks ago, the client distributed the entire IRA as a taxable distribution (check was cashed, etc). Shortly thereafter, the client passed away. The surviving spouse, who also has an account with us, would like to rollover the entire distribution minus the RMD amount into her own account, treating the rollover as assuming the account as her own. We are still obviously within the 60 day window.
Neither the RMD Final Regs nor Pub 590 address this specifically. My thought is that the surviving spouse should be allowed to rollover the distribution and treat the funds as her own (obviously minus the calculated RMD amount).
Do any of you have any thoughts or guidance regarding this particular situation?
I appreciate the help.
Shane
Permalink Submitted by Alan Spross on Wed, 2011-12-14 20:21
Assuming the surviving spouse was the beneficiary on the IRA, there are at least 3 post EGTRRA letter rulings allowing the spouse to roll the distribution (ex RMD) into her own IRA.
They are PLRs 2004-15012, 2004-20037, and 2004-18045. If she is also the executor, it should be easier with respect to any IRA custodian resistance.