Since I don't understand how to phrase the question, let me try listing the items maybe important.Deceased spouse would be 71.Surviving spouse is 52.The IRA is currently an Inherited IRA Beneficiary Distribution Account.I believe, the following is true.1.) Since the beneficiary is a spouse, the spouse can rollover the IRA to her own name. Correct. 2.) If rolled over into the spouse's name, withdrawals would be subject to early withdrawal penalty until the spouse is 59 1/2. Correct again.3.) If rolled over into the spouse's name, no MRD would be required until the spouse turns 70 1/2. Correct again.4.) If left in the Inherited IRA Beneficiary Distribution Account withdrawals can be made without being subject to early withdrawal penalties. Correct again. But they are subject to RMD rules. (It's usually spelled RMD - Required Minimum Distributions.)Now for the question to best I am able to phrase itGiven the ages of the surviving and deceased spouse, is it possible for the IRA to not be subject to MRD and distributions to not be subject to early withdrawal penalties? There's the problem. That sounds like two questions. It's an either/or thing. And it sounds like you understand the rules.She can take the IRA and roll it over to an account in her own name. Then there's no RMD for her until age 70 1/2. But distributions before 59 1/2 will be subject to the early distribution 10% penalty. If it's left in the account titled in the name of the deceased, F/B/O surviving spouse as beneficiary, there will be an RMD, but at age 52 that will not be large. And she can always take more than the minimum, since the payouts are due to death, there's no 10% early distribution penalty. She doesn't have to lock herself into a lifetime payout plan.Bill
Best Of |
Favorites & Replies |
Start a New Board |
My Fool |
BATS data provided in real-time. NYSE, NASDAQ and NYSEMKT data delayed 15 minutes.
Real-Time prices provided by BATS. Market data provided by Interactive Data.
Company fundamental data provided by Morningstar. Earnings Estimates, Analyst Ra