RMD treatment on Spousal 401(k) after surviving spouse retitles account
I have a client whose spouse passed 2 years ago. He was 75 years. She is 72 years old now.
She re-titled his 401(k) into her name. She wants to move the funds out of the 401(k), and into an IRA under her name. The company policy requires distributing this years RMD prior to the trustee to trustee transfer.
With the deceased spouse’s 401(k) titled in the surviving spouse’s name, whose age is used for calculating the RMD to be distributed?
Permalink Submitted by Alan - IRA critic on Wed, 2023-05-10 23:00
The age of the surviving spouse, therefore if the surviving spouse will be 72 at the end of 2023, her single life table divisor for age 72 will apply. She is treated as a beneficiary, not as the owner of the 401k.