RMD – deceased person

Submitted by Robert Roselli on Mon, 2023-01-30 13:53

I had a client, who was 74, passed away in December 2022. He satisfied his RMD prior to his death. His spouse is not RMD age. Now that we are in 2023, and the deceased passed away in 2022, does his spouse need to satisfy what would have been his RMD for 2023 if he were still alive? I think the answer is no, but I want to double-check.



Submitted by Alan - IRA critic on Mon, 2023-01-30 15:38

You are correct, there is no 2023 RMD if the spouse elects to assume ownership of the inherited IRA anytime in 2023. However, if the spouse remains as beneficiary, she would have to take a beneficiary RMD using the single life table for her age in 2023. The only benefit of remaining as beneficiary would be if she is under 59.5 and might need distributions before 59.5. 

Submitted by Robert Roselli on Mon, 2023-01-30 15:53

Thanks for confirming. Just to clarify, the decedant had a TIRA not an Inherited IRA. His wife is 67, so she won’t have to take RMDs until she turns 73, correct? I am going under the assumption that the RMD age will still be 73 when she gets there.

Submitted by Alan - IRA critic on Mon, 2023-01-30 17:41

  • Yes, her RMDs will begin at age 73 if she does the spousal rollover, but if she continues to maintain an inherited IRA she will have to withdraw a beneficiary RMD every year starting in 2023. That said, if she failed to complete her beneficiary RMD she would default to ownership status anyway. Since she is over 59.5 she should simply elect to assume ownership of the IRA this year and that will eliminate RMDs until she reaches 73.
  • Assuming ownership could also help the beneficiary she should have named on the account. For example, if she names a sibling who is not more than 10 years younger than she is as her beneficiary, if she passes the sibling will be an EDB if inheriting an owned IRA. On the other hand, if she maintained the IRA as inherited, the sibling would be a successor beneficiary subject to the 10 year rule as well as annual beneficiary RMDs in years 1-9. Another reason for the wife to assume ownership ASAP.

Submitted by Robert Roselli on Mon, 2023-01-30 18:16

My understanding is that if you Inherited an IRA after 1/1/20, the rule is still in place that you have to empty the IRA by 12/31 of the 10th year, but no mandatory distributions. For example, if you inherited an IRA in 2020, you have until 12/31/2030 to empty it. When you said taking RMDs in years 1-9, is it law now that beneficiaries who inherited IRAs after 1/1/20 now have annual mandatory distributions? I thought this wasn’t included in Secure2.0? I thought you can still wait until year 10 to take all the money oit.

Submitted by Alan - IRA critic on Mon, 2023-01-30 18:28

  • Spousal beneficiaries are EDBs (eligible designated beneficiaries)  and EDBs are not subject to the 10 year rule. They can stretch an inherited IRA as before Secure, or could also assume ownership (spousal rollover) at anytime.
  • Some non spousal beneficiaries are also EDBs and not subject to the 10 year rule. For the rest of them the 10 year rule applies. In addition, if the plan owner passed after their RBD annual RMDs are required in years 1-9 for beneficiaries. If the plan owner passed prior to RBD,  there are no annual RMDs, just a full distribution by the end of year 10. This reflects the proposed Secure Act Regs, still not final at this time.

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