Spousal Exception for RMDs from IRA

Submitted by David Toberisky on Sat, 2021-03-20 13:49

Page 126 of Ed’s new book notes that the rule for using the Joint Life Expectancy Table applies “when the spouse is 10 years younger AND is the sole beneficiary for the entire year.” Does that mean if the spouse is listed as primary beneficiary to 100% of the IRA that listing a son, for example, as the contingent beneficiary (also 100%), the exception is violated? Or so long as the spouse is 100% primary (in other words, the sole primary beneficiary), having a contingent beneficiary is a non-issue in this regard?

Thanks for any feedback on this.



Submitted by Alan - IRA critic on Sat, 2021-03-20 16:51

Contingent beneficiary is a non issue, so the IRA owner can use the joint table if sole spousal beneficiary is MORE THAN 10 years younger. 10 years produces the same result as the Uniform Table which assumes the beneficiary is exactly 10 years younger.

Submitted by David Toberisky on Sun, 2021-03-21 12:11

Thanks for your reply and the clarification.

Submitted by Erin Anderson on Mon, 2023-01-30 18:42

If a spouse is more than 10 years younger (age 60) when the deceased spouse was age 78, wouldn’t it be better for the beneficiary spouse who was 100% primary beneficiary of the IRA be better to treat it as their own, than to do the spousal exception?  It appears to me the spouse exception would be beneficial when both spouses are taking RMD and the spouse exception reduced the RMD for the surviving spouse and keeps taxable income lower.    Or can the spouse exception be applied to the surviving spouse’s RMD when they start at age 75, even if she rolls it over and treats it as her own?

Submitted by Alan - IRA critic on Mon, 2023-01-30 20:24

For years after the death of the first spouse, the age difference is no longer a factor. The surviving spouse can either continue as beneficiary or elect ownership of the inherited IRA. When the deceased spouse passes after RMDs have begun as is the case here, the surviving spouse should assume ownership as long as she is at least 59.5. Therefore, in this case the surviving spouse should assume ownership. RMDs as owner would not begin until she reaches 75.

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