My client inherited her deceased husband’s IRA four yeas ago.
The IRA is titled — her name -IRA BDA – deceased husband’s name.
First what does BDA mean and since the husband was 73 years old and taking RMD’s are we able to now
transfer this IRA to her personal IRA? Wife was also more than 10 years younger than deceased husband.
Permalink Submitted by Alan - IRA critic on Sun, 2017-02-12 21:19
BDA=beneficiary distribution account. Client should have rolled over this inherited IRA to her own IRA once she reached 59.5, and should do that ASAP. In addition, once her husband would have reached 70.5, she was required to take beneficiary RMDs. If she did not complete any beneficiary RMD she defaulted to owning the IRA even if it was not re titled as such. As owner of the IRA she will not have RMDs until 70.5, but if she passes now with the IRA as an inherited IRA, her own beneficiaries will not get a new stretch and will have to continue her RMD schedule.