Husband (70.5+) owned an Individual Retirement Annuity. Annuity value was modest, but the death benefit was significant. Husband was drawing payments on annuity value to satisfy RMD.

Wife (also 70.5+) is beneficiary of the annuity. Wife receives significant death benefit value.

Since this is qualified, the death benefit remains pre-tax as well, correct? And wife could roll the death benefit into an IRA?

After passing and upon receipt of DB, how are RMD’s now calculated? Husband’s RMD would be satisfied for year of death, but that calculation was on the value of the annuity and not the DB. Wife will be opening a new IRA (didn’t have one before) at a different custodian from where the annuity was held. If the account is opened mid-year, the value as of 12/31/16 would be zero for calculation purposes from the new custodian. Is she removed from having an RMD on these funds until 2018?