Beneficiary of Beneficiary IRA
We just had a client die that had a Beneficiary IRA (he was beneficiary of his mom’s IRA). His wife is the beneficiary of this IRA.
1. Do we just open another Beneficiary IRA with her as the owner? Who is considered the decedent?
2. The RMD’s of the current Beneficiary IRA is based on the husband’s life expectancy. What would the RMD’s of the new Beneficiary IRA based upon?
Permalink Submitted by Alan Spross on Wed, 2012-06-20 21:04
This thread will cover your questions with respect to the title format for the successor beneficiary.
http://www.irahelp.com/forum/viewtopic.php?f=1&t=7732&p=24850&hilit=titl…
The RMDs for the client’s wife must continue the RMD schedule of her husband, ie use the same divisor as if he was still living and reduce it by 1.0 each year. The IRA continues to be considered a non spouse inherited IRA even though the beneficiary’s spouse has now inherited it. Therefore, she cannot do a rollover and can only move funds to a new custodian by direct transfer.