IRA RMD
Hello,
If I have a client who has never had an IRA but opens one because her spouse died and listed her as the sole beneficiary, would she have an RMD due for 2018? She is 82, her husband was taking RMDs already and satisfied his before death in 2018. Since her custodian doesn’t have a 2017 value, as the spousal transfer took place in October 2018 would she skip the 2018 year and start her RMDs in 2019- being due by 12/31/19?
Permalink Submitted by Alan - IRA critic on Mon, 2018-10-08 23:35
Yes, her first RMD will be due as you stated. She should elect to assume ownership of the inherited IRA ASAP since continuing the account in inherited form will cause her RMDs to be higher, perhaps much higher than if she owned the IRA, and will also result in her own beneficiary losing part of their stretch.