RMD When Original Owner and Spouse Pass In Same Year
IRA Owner passed away before RBD at age 70 in July 2023. Spouse elected to treat the IRA as her own even though she turned 73 (RBD age) in 2023. Neither original owner nor spouse have taken any funds out of their respective IRAs in 2023. Spouse passed away in October 2023.
Does the son, who is sole beneficiary (non-EDB) need to take an RMD in 2023? And if so, how is the amount determined? Or is he just subject to the 10-year rule, with any 2023 RMD waived by the IRS?
Permalink Submitted by Alan - IRA critic on Thu, 2023-11-02 16:39
There is no 2023 year of death RMD due because the IRA owner passed prior to RBD. The election of ownership by the surviving spouse does not trigger a 2023 RMD per IRS Reg 1.408-8, QA 5, but naming the son as her beneficiary results in the son being a designated beneficiary of an IRA owner who passed after RBD. Therefore, the son will have to take annual beneficiary RMDs based on his single LE starting in 2024 and drain the inherited IRA by the end of 2033.