deadline for remaining RMD in year of account owner’s death from a spousal IRA
Dear Alan et al,
My client passed away recently and his wife is the sole beneficiary of both of his IRAs. He still has $21K of his RMD that needs to be satisfied.
Our plan is for his wife to open up her own IRA and go with the spousal rollover option because she is over 59 1/2 but is not yet 70 1/2 and would prefer to defer taking additional RMDs until she turns 70 1/2.
My understanding is that we can roll the entire balance over to her IRA and then take the $21K remaining RMD out of her IRA so she would get the 1099. I also understand that the deadline for this is 12/31/18 just as it would have been if he were still alive.
Am I missing anything?
Thanks in advance,
Chris
Permalink Submitted by Alan - IRA critic on Sun, 2018-10-21 22:41
Chris, that is correct. She can either take the remaining RMD from the inherited IRA after she retitles it OR from her own IRA after the spousal rollover. Either way, the 1099R will show her SSN.
Permalink Submitted by Christopher Combs on Sat, 2018-11-17 17:07
Alan, our custodian’s paperwork is going to allow her to take a “beneficiary distribution” out of her deceased husband’s IRA. She doesn’t have to re-title the account in order to take this distribution. However, she does have to provide her Social Security number. I assume that the IRS doesn’t care if the remaining RMD comes out of the account of the original owner (her husband) but I thought I’d check with you. Thanks for all that you do. Sincerely,Chris
Permalink Submitted by Alan - IRA critic on Sat, 2018-11-17 19:19
Permalink Submitted by Christopher Combs on Sat, 2018-11-17 21:30
Alan,Thank you. On Monday, I will confirm with our tax reporting department that the 1099R will be issued under her Social Security number. I also appreciate the article written by Natalie Choate. Her book is on my Christmas list….a clear sign of aging.Best regards,Chris