Minimum Required Distribution (beneficiary)

[Guest sritts]

I have a plan that has a deceased participant - age 66. Her husband is sole beneficiary of her account and plans to roll over the balance into an IRA.

Question is: husband is age 70.5 - will he have to take a MRD this year from this money?

[mbozek]

To avoid taking minimum distributions he can continue the IRA in her name as the beneficary until year owner would have attained 70 1/2.

[Guest sritts]

Thank you for your assistance.

[txdd]

Would this really work?

I thought that, when a surviving spouse rolled over a 401k into an IRA, the IRA would be in the spouse's name --- not like an inherited IRA. In that case, the spouse would have to start taking MRD's based on the spouse's age.

Don't know about the year of rollover though.

[mbozek]

What I meant to say is that the H should not roll over the funds into an account in his name but continue as beneficiary of the spouse s account until she whould have reached 70 1/2.

[Guest sritts]

Thank you for the clarification. That makes more sense to me.