Client dies after 70 1/2
Client dies after 70 1/2 (80) and has not yet satisfied his 2012 RMD yet- spouse is primary beneficiary and is looking to treat his IRA as her own and not as a beneficiary IRA. I read where the spouse must take the RMD prior to moving the funds into her IRA so it doesn’t create an excess contribution. I’m assuming this is only if the spouse is currently contributing to her IRA??? Can the spouse rollover the funds directly to her IRA and then request her husbands RMD prior to December 31st?
Permalink Submitted by Jose Morales on Tue, 2012-08-07 20:26
RMD’s are never eligible for rollover, therefore if the spouse is going to move the funds into an IRA in their own name via a spousal rollover they must complete the RMD first. If they assume the IRA in their own name, even if it requires a new account be opened, it is handled as a non-reportable transfer and therefore not subject to the RMD requirement prior to transfer. It may seem silly as long as the RMD is taken by the end of the year, but those are the IRS rules.