My husband died in 2010 at age 74. He had been taking annual distributions, using the fractional divisor from a table provided by the custodian.
I am under age 70 1/2, was sole beneficiary. The funds from his two accounts are now in 2 new accounts, both in my name, separate from funds in my own IRA.
What minimum distribution rules apply to me for 2011?
Thanks in advance.
An RMD for 2010 had to be made, based on 12/31/09 balance. If that wasn't taken in 2010, it should have been.
If the accounts were moved to your name, not 'beneficiary account', they are yours, no RMD as you are not 70-1/2. The funds do not need to be kept separately any longer.
(I am sorry for your loss)
Joe
Thanks, Joe. He did take a distribution in 2010, and it exceeded the computed amount based on the 09 year end balance by about $500. The accounts in my name are "beneficiary" accounts.
A R Pickett
remove lower case "e" to respond
If you leave them that way your 2011 required distribution is based on your age in 2011 and the 12/31/2010 balance. If you're over 59 1/2 moving them into your name would eliminate required distributions until you reach 70 1/2 while having the ability to take what you want without penalty.
See IRS Publication 590
Phil Marti VITA/TCE Volunteer Clarksburg, MD
Exactly right. A "beneficiary", regardless of age, must start to take an RMD the year after death of the account holder. However, the rules allow for a spouse to put the funds in her own name and avoid till she turns 70-1/2.
I'm sure there are reasons to keep as beneficiary in certain situations. e.g. - if the surviving spouse has post tax IRA money and wishes to start on a conversion plan to Roth IRA, keeping the account as beneficiary also keeps the numbers out of the equation when determining the percent of conversion that's taxable.
Joe
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