Inherited IRA
What if a husband ( age 64 ) passes away with a Traditional IRA valued at $ 500,000.00 . The wife ( age 51 ) is the sole beneficiary and is in no need to take any funds. Because of her age, she establishes an Inherited IRA but never takes any distributions from said account. When she turns age 60 ( in year 9 ), can she then just transfer the Inherited IRA to her own IRA without ever having taken a distribution from the IIRA?
Permalink Submitted by Alan - IRA critic on Mon, 2022-02-14 19:09
If she is the sole beneficiary, she has no beneficiary RMD requirement until the calendar year that her husband would have reached 72. If nothing is done in that year she becomes the owner by default. However, in that year she can assume ownership and have the inherited IRA retitled and transferred to her own IRA. She will not have owned IRA RMDs until she is 72, but can take any distributions as needed. If she needs any funds prior to 59.5, she should take those distributions prior to electing ownership of the IRA.