RMD Questions
I have a husband and wife as clients. He just died on December 21st, 2007. His DOB was 10/21/1936 (turned 70 1/2 on 4/21/2007). He did not take any RMD prior to death. If she treats his IRA as an inherited IRA what has to happen? Is she forced to take two distributions in 2008 (April 1, 2008 and another by December 31, 2008)?
As additional background, she just turned 58 on 11/30/2007 and needs to generate income from this IRA, so I think a rollover may not be an option.
This also may force her to take at least 2x the RMD anyway in 2008??
Thanks for any advice.
Jim
Permalink Submitted by Al Fry on Wed, 2008-01-02 18:57
He was not required to take an RMD until his RBD of 4-1-08. Since he died before that time, no RMDs for him are required. Since she is 58, she probably wants to take the DB as a inherited IRA. She would not have a RMD until 12.31.08, based on her age then, and the account balance as of 12.31.07. Any money she takes out before that date will offset the RMD amount. As soon as she is past 59 1/2, she can roll it to herself, which would eliminate RMDs until her age 70 1/2, as well as allowing a better table for minimizing RMDs. Of course, she can always take out more. Info can be found in IRS Pub. 590, p. 36.