Inherited IRA from spouse.
My client age 53 will be investing into an inherited IRA with $110,000 from his wife’s TDA.
How do you calculate his MRD for the year following his wife’s death. The only table i could pull up was the Single Life Table which shows at age 53, the divisor is 31.4.
How do you calculate that into monthly income.
Also, if he is on a MRD withdrawal plan, can he still evoke the 5 year rule after.
Thank you.
Permalink Submitted by Alan - IRA critic on Wed, 2014-04-16 23:47
Does he want an inherited IRA rather than rolling it over to his own IRA to get penalty free distributions prior to reaching 59.5? If he rolled it over to his own IRA, RMDs would not need to start until the year he reached 70.5 and then the Uniform Table would apply. If he wants the inherited IRA, if he is the sole beneficiary of her plan, RMDs do not have to start until the year his wife would have reached 70.5. The 5 year rule may not even apply depending on his wife’s age in the year she passed.