Inherited SEP IRA
We have a new client who has an Inherited SEP-IRA from her deceased husband. He died in 2008 at the age of 83 and she was age 58. She has been taking RMDs from the account since then. She is now age 65, can she retitle the Inherited SEP-IRA into her own name now?
Permalink Submitted by Alan - IRA critic on Thu, 2015-09-17 16:52
Yes. She should have done so when she reached 59.5, as it would have stopped her RMDs until she reached 70.5. Rolling this over to her own IRA (non SEP) will also protect the stretch for her beneficiaries. If she rolls the inherited IRA over this year, her 2015 RMD as a beneficiary will not be required as she will be treated as the owner the entire year.