Divorced ex spouse subject to RMD
My frend is in the midst of divorce. she is only 55. Her ex husband is 71, thus he is subject to RMD. If she receives part of his IRA in the settlement, is SHE now subject to RMD this year and subsequent years? Perhaps it depends on whether the $ is placed in ‘her own’ IRA.. or an ‘inherited’ IRA. thank you.
Permalink Submitted by Alan - IRA critic on Fri, 2018-01-19 23:36
She is not subject to RMD, and in addition her share of the IRA must be moved to her by a direct transfer and none of a direct transfer counts as an RMD for the ex. The transfer will go to her own IRA, not an inherited IRA which is only created upon death of the IRA owner. The ex will still have to take his 2018 RMD in full, but he can also still use Table II for his 2018 RMD even if the divorce is final in 2018.