Client passed away a month before 70 1/2 date
Client dob = 10/21/1943. He passed away on 02/24/2014. His wife is the sole beneficiary. Is she required to take his RMD for 2014?
He may have received one payment from his workplace retirement plan, setup to take each month during the year.
Permalink Submitted by Alan - IRA critic on Wed, 2014-02-26 20:40
Did client have an IRA account or just the qualified plan? Was client still working when he passed?
Permalink Submitted by Julie Brangenberg on Thu, 2014-02-27 20:38
Client also had an IRA account, but is scheduled to take his 1st RMD in November 2014. Client was retired when passed away.
Permalink Submitted by Alan - IRA critic on Thu, 2014-02-27 22:12
It is important to note that while he passed in an RMD year, he did pass PRIOR to the required beginning date. That means that his sole spousal beneficiary can roll both of these accounts over to her own IRA account without any additional RMDs for 2014. After that her RMDs will depend on her age. Of course, if the workplace plan is a DB life pension then she cannot roll it over, but would receive a joint and survivor benefit of a certain % of client’s payments. If he wife is under 59.5 and needs money, then she might opt to keep these in beneficiary form until she reaches 59.5.