Required Minimum Distribution?

[Jilliandiz]

I have a client who has an existing IRA. He is over 70 1/2 and began taking his RMD last year. However, his wife died this year, he was the beneficiary of her profit sharing account, therefore, he rolled over his wife's account into his existing IRA. He needs to still take a RMD for 2003. Since RMD's are calculated from the beginning balances, how does this rollover effect what he receives in 2003. The rollover into his account occurred in August, 2003.

Thanks.

[mbozek]

He is required to take the RMD that the wife would have taken for 2003 from her PS plan. Reg 1.401(a)(9)-5 Q-4. I am assuming that the wife did not take her mrd for 2003. If the MRD was taken then he is only required to take the MRD due on his account for 2003.

[jaemmons]

That's assuming the deceased spouse was over age 70 1/2 at the time of death.

If the spouse was not age 70.5 or older, the surviving spouse would take the spousal rollover into account for determining the RMD which needs to be taken by the end of 12/31/2004. The deceased spouse's rollover is not taken into account for the RMD which needs to be taken by 12/31/2003, as the balance used to determine the surviving spouse's RMD is based on the value in the surviving spouse's IRA account on 12/31/2002.

Confusing huh?