RMD after 401k rollover to inherited IRA

Submitted by John Peterson on Mon, 2015-09-14 14:43

48 year old Spouse of 48 year old decedent rolls decedent’s 401k into an inherited IRA in 2014.

Can Spouse delay RMDs until decedent would have been 70 1/2 (I assume not)?

Will Spouse’s first RMD be due by 12/31/2015 (I assume so)?

Will Spouse be eligible for the post-death exception to the 10% early distribution penalty (I assume yes)?

Thanks



Submitted by Alan - IRA critic on Mon, 2015-09-14 16:36

Yes, if spouse is the sole beneficiary of the IRA then RMDs do not begin until the year the deceased spouse would have reached 70.5. If surviving spouse needs a distribution, it will be penalty free. Typically in this situation, surviving spouse would not roll the inherited IRA into their own IRA until reaching 59.5 to preserve penalty free distributions.

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