Inherited IRA decedent passed RBD
Husband and wife, the wife passed away leaving her IRA to the husband. Both are beyond the RBD. The husband is 4 year older than the wife. If the wife’s IRA is simple moved to the husbands it seems the RMD’s would be higher as the husband is older and male??
Would it be better to leave the IRA under the wife and continue the RMD’s based on her life expectancy? If so, how would that inherited IRA account be titled? Does the husband get to put new beneficiaries on that account or does it stay to the contingents as were in place at time of wife’s death?
Permalink Submitted by Alan - IRA critic on Wed, 2017-03-08 20:28
Husband should roll the inherited IRA into his own IRA. RMDs will be lower because the Uniform table applies to owner IRAs and a joint life expectancy with a spouse more than 10 years younger is included in this table. He should update the beneficiary on the combined IRA but the new beneficiary will not affect his RMDs. If he assumes ownership of her IRA before doing the transfer to his IRA, the RMD for the year he assumes ownership will be based on his age and Uniform Table as long as he does not assume ownership in the same year his wife passed. For the year she passed, he must complete her year of death RMD if she did not complete it.