Spousal Inherited IRA
A surviving spouse is under 59.5. Her deceased husband would still be under 59.5 today.
The Wife opened up an IRA BDA and has not taken distributions. The husband died five years ago.
Can the surviving spouse defer RMD’s until the husband would of been 59.5, or can she journal the funds into her personal IRA and use her own schedule?
Permalink Submitted by Alan - IRA critic on Mon, 2015-11-09 19:41
If surviving spouse was the sole beneficiary of this IRA, there are no beneficiary RMDs required until the year the deceased spouse would have reached 70.5. She should retain the inherited IRA if there is any chance she will need distributions from it before 59.5 to avoid the 10% penalty. She can roll over any portion of the inherited IRA she wishes to her owned IRA, but any distributions from the owned IRA will be subject to the penalty until 59.5 unless she qualifies for a different penalty exception.
Permalink Submitted by Michael Klonsky on Mon, 2015-11-09 20:03
Thank you appreciate the info.