Ex-wife inherits IRA
I have a client who passed away and left his IRA to his ex-wife. Is the ex-wife considered non-spouse and must follow the 10-year rule? I’m not sure yet if the ex-wife is listed as a spouse on the beneficiary form or ex-wife.
I have a client who passed away and left his IRA to his ex-wife. Is the ex-wife considered non-spouse and must follow the 10-year rule? I’m not sure yet if the ex-wife is listed as a spouse on the beneficiary form or ex-wife.
Permalink Submitted by David Mertz on Wed, 2021-02-17 20:53
The ex-spouse is a non-spouse beneficiary even if she is identified on the beneficiary form as spouse of the client. If the ex-spouse is not more than 10 years younger, she is an Eligible Designated Beneficiary who bases RMDs on her life expectancy. If she is more than 10 years younger, she is subject to the 10-year rule (unless she is an EDB by being disabled).