RMD for year of death but spouse now owns policy

Submitted by Toby Hartley on Thu, 2021-03-25 18:55

Spouse is completing a spousal continuance on a few policies. The husband died this year and was of RMD age, she is not. I know she needs to take RMD on his behalf for this year. However, is there any issues with the fact the carrier will 1099 her as she will be the owner by the time its processed?



Submitted by Alan - IRA critic on Thu, 2021-03-25 19:51

This is not a problem since even if she maintained the account (IRA annuity?) as a beneficiary the 1099R would indicate her SSN. Either as owner or beneficiary, she has until 12/31/2021 to complete the year of death RMD.

Submitted by Toby Hartley on Fri, 2021-03-26 16:15

Another issue.   Consolidating policies from spouses death right?  Well half of them were 403b and half IRA.     The plan was to take the RMD for year of death from just one account as all will be IRA’s within a month.   Can we aggregate or is it based on how the funds were coded on 12/31/2020, and we have to take from the types separately?

Submitted by Alan - IRA critic on Fri, 2021-03-26 18:16

Was husband still working for the 403b sponsor at his death, or did he retire after 2019?

Submitted by Toby Hartley on Fri, 2021-03-26 18:22

No retired a few years ago

Submitted by Alan - IRA critic on Fri, 2021-03-26 18:38

OK, if husband had been taking RMDs in the past he passed after his RBD.  A rollover from the 403b cannot include the 403b year of death RMD and the 403b will have to distribute the 2021 RMD for that plan with or without a rollover this year. The IRA year of death RMD will have to be taken from the IRA. 

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