RMD from Deceased Spouse IRA
What happens when a spouse continues to receive her deceased husbands IRA RMD before rolling that IRA into her own? She is the only beneficiary. RMD was automatic to bank.
What happens when a spouse continues to receive her deceased husbands IRA RMD before rolling that IRA into her own? She is the only beneficiary. RMD was automatic to bank.
Permalink Submitted by Alan - IRA critic on Tue, 2021-06-08 18:16
Post death distributions will be taxable to the surviving spouse, and the spouse is responsible for completing the year of death RMD. The problem is that the spouse has apparently not provided a death cert and transferred the account to an inherited IRA or owned IRA, so these distributions will be reported on a 1099R for the deceased spouse. Perhaps this problem started in 2020 even though 2020 RMDs were waived, and continues to the present. Surviving spouse needs to report the death and have the IRA retitled (the custodian would probably transfer the balance to an inherited IRA under surviving spouse’s SSN and stop distributions under the present IRA). The surviving spouse also needs to decide whether she would benefit from an inherited IRA by penalty free distributions if under 59.5 or otherwise should assume ownership of the inherited IRA. Would need to know the DOD to determine how best to deal with the final joint return 1099R forms.