What account to take the RMD from
Taxpayer age 78 with a 403(b) , was working this year but now is in hospice and will pass shortly. An RMD will need to be taken. Does the spouse have the ability to take the RMD (for the taxpayer) from the spouse’s IRA (post rollover) or does the RMD must come from the 403(b)?
thanks
Permalink Submitted by Alan - IRA critic on Wed, 2020-02-26 20:43
It should come from the 403b, either to the taxpayer or to the beneficiary if taxpayer passes first. The 403b plan should not include the year of death RMD in the rollover, but if they do by mistake, the RMD amount included in the rollover will be treated as an RMD and an excess contribution to the IRA that must be removed. Reporting this chain of events is a hassle, because reporting this on Form 1040 will not conform to the 1099R form. Therefore, in the end the RMD money will have to be distributed out of the IRA as an excess contribution if it was included in the rollover.
Permalink Submitted by Dean Mioli on Wed, 2020-02-26 22:01
Excellent, thank you