RMD Year After Death
IRA owner husband died 12-18-2013 at age 77 (birthday 6-17-1936). RMD was taken before he died in 2013.
Assets are still in deceased IRA owner’s account. IRA owner’s wife is the primary beneficiary and plans to rollover the funds to her IRA in 2014.
Is the RMD required for 2014 based on that age the deceased IRA owner would have been on 12-31-2013 (age 77)?
Is it necessary to distribute the RMD in 2014 before the spousal rollover is made OR is it acceptable for his spouse to distribute the RMD from her spousal rollover account some time in 2014?
Permalink Submitted by Alan - IRA critic on Wed, 2014-01-08 00:21
The 2014 RMD is based on the balance on 12/31/2013 and the age of the surviving spouse on 12/31/2014 (not the age of decedent). Surviving spouse will be treated as if she owned the inherited IRA for the entire year of 2014 and can therefore satisfy her RMD in any combination of her owned IRA accounts. Her first distribution is deemed to apply to her RMD, and she cannot roll over an RMD. Therefore, if so for reason she wants to avoid an RMD at the time of the rollover, it should be done by direct trustee transfer, not by 60 day rollover.