beneficiary IRA spouse

Submitted by Jon Heller on Wed, 2023-11-15 12:44

I have a client age 53 whose husband age 62 passed away. He has a large IRA I want to move it to an inherited IRA so the spouse can access money if needed before 59.5. After 59.5 can I move it to and IRA in her name to avoid distribution in 10 years.



Submitted by Alan - IRA critic on Wed, 2023-11-15 14:37

  • Yes, beneficiary RMDs will be required starting in 2036 when husband would have reached his RMD age of 75. Client should elect to assume ownership right after reaching age 59.5 and her own RMDs will not start until she is 75. This will avoid any beneficiary RMDs in the meantime. 
  • GIven that this is the last year she can file jointly at the lower tax rates, she might consider doing a measured Roth conversion before year end. Her marginal rate will be higher starting next year filing single unless she remarries. 
  • If husband had any basis in his IRA (Form 8606), she inherits such basis and should report on her own 8606 in the first year she takes a distribution. 

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