RMD – Spousal Beneficiary Account + Traditional IRA
Hi,
We have a client, Jane, whom holds two accounts with us. One account is a Spousal BDA IRA that she inherited from her now deceased spouse; Jane’s other account is her own traditional IRA.
Can Jane take a distribution from her Spousal BDA IRA in order to satisfy the RMD requirement for her traditional IRA, or will she have to take her RMDs from each account seperately?
Thanks!
Permalink Submitted by Alan - IRA critic on Mon, 2017-12-18 22:55
Since she is over 70.5, she should roll the inherited IRA into her own IRA, and she will then have only one RMD and the RMD for the inherited IRA will be reduced unless the deceased spouse would not yet have reached 70.5. As long as she keeps the inherited IRA in beneficiary format she will have to satisfy the RMD separately from that of her own IRA. If she assumes ownership of the inherited IRA before year end, she will be treated as the owner of that IRA for all of 2017 and her RMD will be reduced. This will also protect the stretch for her own beneficiaries after she passes. If husband would not yet have been 70.5 at the end of this year, please advise.