Spouse remain as beneficiary under SECURE ACT 2.0
A spouse in her 60s inherits an IRA from her husband (who was the same age when he passed), would there be any advantage to remaining as beneficiary for the surviving spouse when it comes to eventual distributions to her beneficiaries when she passes away assuming there is still money in the IRA? The next generation would still have to cash in the IRA within 10 years, is that correct?
Permalink Submitted by Alan - IRA critic on Wed, 2023-02-22 15:40
In this situation, there is no advantage to retaining the IRA as inherited. The spousal rollover should be done and new beneficiary named. Owner RMDs would start at either 73 or 75 based on the surviving spouse’s actual DOB. Beneficiary named by the surviving spouse would usually be subject to the 10 year rule unless they qualify as an EDB that qualifies for the stretch. Children of the surviving spouse do not qualify as EDBs unless disabled or perhaps inherit as a minor which would delay the start of the 10 year rule to the year they reach 21.