Spousal inherited IRA
I have a male client, dob 11/10/1949. His spouse, dob, 11/12/1952, passed away Oct 2020. On one her IRAs, he did an inherited IRA. Does he have to take an RMD this year or can he wait until she would have been 72 (2024). Thanks
I have a male client, dob 11/10/1949. His spouse, dob, 11/12/1952, passed away Oct 2020. On one her IRAs, he did an inherited IRA. Does he have to take an RMD this year or can he wait until she would have been 72 (2024). Thanks
Permalink Submitted by Alan - IRA critic on Fri, 2021-11-12 15:38
He can wait until 2024 when she would have reached 72 before starting beneficiary RMDs. He could also elect to assume ownership in 2024 which would result in a much reduced RMD (Uniform Table v. Single life) for 2024 and beyond. Waiting until 2024 has the benefit of avoiding RMDs altogether until that year.