RMD for Spouse after 70 1/2
A husband died late in 2011 at the age of 89 and had already satisfied his RMD. The surviving spouse is 88 and has her own IRA at the same institution. The surviving spouse would like to move her deceased husband’s IRA over to her IRA. Since it is now 2012 and no RMDs have been taken yet from either of their IRAs, do we first have to take out his RMD for 2012 before moving the IRA account to her IRA? Not sure if we could move his IRA to her IRA and then take out the combined RMDs. Thank you!
Permalink Submitted by Alan Spross on Thu, 2012-01-12 22:55
If a surviving spouse does a rollover in any year AFTER the year of death, they are treated as if they owned the IRA all year. Therefore, the RMD for this IRA is part of her total RMD for 2012. It would probably be easier to take the out the RMD before doing the rollover, but it is not a requirement to do so, since her could have satisfied her total RMD from any other IRAs she may own.
If the rollover of the inherited IRA is done before taking the RMD, her total 12/31/2011 balance of her prior owned IRAs is increased by the 12/31/2011 balance of the inherited IRA for purposes of determining the RMD for 2012.
Permalink Submitted by Jonathan Sard on Fri, 2012-01-13 13:49
So if I combine both IRAs now, and then do the RMDs from the one IRA, I am going to use the surviving spouse’s life expectancy based on her age in 2012, correct? Even though I am using the deceased spouse’s account balance as of 12/31/11 while the account was still in his name, I am going to use the surviving spouse’s life expectancy since the RMD will be taken from her IRA in 2012? Thank you!
Permalink Submitted by Alan Spross on Fri, 2012-01-13 17:18
Yes, that is correct. Use the uniform table and surviving spouse attained age in 2012.