Spousal IRA
I have both a rollover IRA and a Roth IRA. This year I will be taking my first RMD. My wife (we are the same age), is the designated beneficiary on on my IRA’s and my adult children are contingent beneficiaries on both.
My wife does not have an IRA of her own.
My questions are:
1. If/when my wife inherits my IRA’s, can she create IRA’s of her own?
2. Assuming the answer to question 1 is yes, am I correct that she will use the Uniform Lifetime Table to calculate her RMD’s?
3. If the answer to question 1 is no, what can/should she do to maximize her “stretch” capabilities with the IRA’s she will inherit?
Permalink Submitted by Alan Spross on Fri, 2010-08-13 02:55
1. Yes, she can assume ownership of the IRA or roll it over to a new account in her name. If she happened to inherit prior to age 59.5 and needed to to take distributions, she could maintain the IRA in inherited status to avoid the early withdrawal penalty, and after reaching 59.5 she could then assume ownership. She can assume ownership at any time, but once she does it cannot go back to inherited status.
2) Yes, the Uniform table applies once she assumes ownership.
3) Not applicable