RMD for deceased IRA owner in year of death
If an IRA owner is subject to RMD in the year he dies, and the sole IRA Primary beneficiary is his spouse, and the spouse intends to transfer the deceased spouses IRA to her own IRA as she is younger and not yet subject to RMD, I know that the RMD still needs to be made for the deceased IRA owner IRA, ]my question is does the remaining RMD have to be made from the deceased owners IRA to the spouse beneficiary prior to transfering the decease spouses IRA to the beneficiary spouse’s IRA or does the deceased owners IRA get transferred to the spouses IRA first and then the RMD for the deceased spouse is completed from the beneficiary spouse’s IRA in the year of death of the deceased IRA owner?
Permalink Submitted by Alan Spross on Sat, 2012-06-16 19:57
Actually, if the IRA owner passed PRIOR to the RBD, the surviving spouse can do the rollover without taking an RMD, therefore the actual RBD is the deciding date, not just being 70.5.
For death on or after the RBD, the surviving spouse must take the decedent’s RMD, but it does not matter whether this is done before rolling the account over or afterwards. Either way, that RMD will be reported under the surviving spouse’s SSN. Sometimes this year of death RMD is not identified until after the year of death. In that case, Form 5329 should be filed on the surviving spouse’s (probably final joint return) tax return requesting waiver of the excess accumulation penalty and explaining that the RMD has been completed.