Scenario – client age 78, was working full time so didn’t have to do RMD’s from 401k at his employer. He died this summer and Fidelity (401k custodian) rolled the balance to IRA for spouse. QUESTION: does the spouse now need to do an RMD for 2019, or can she wait until 2020 (spouse age 71)?
The spouses DOB is 8/20/1948 so she turned 70.5 in 2019. Does this mean she can wait until 2020 to take the RMD on the IRA balance that was transferred from the husbands 401k?
Yes. For this particular IRA balance (disregards any IRA balance she has prior to the rollover), there was no IRA balance on 12/31/2018, and therefore no 2019 RMD. She will have a 2020 RMD as this rollover balance will be in her IRA on 12/31/2019.
Permalink Submitted by Alan - IRA critic on Wed, 2019-10-23 20:09
Because the client passed (different RMD affect than retirement) prior to his RBD, there is no 2019 year of death RMD required of client. Spouse’s 12/31/2019 IRA balance will be higher, but her first IRA RMD distribution year is the year she reaches 70.5. Not clear if she reaches 70.5 in 2019 or 2020.