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IRA beneficiary of a beneficiary


M Norton

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IRA owner dies at age 64, beneficiary is his older brother, age 69-70; brother dies at age 73 (presume he was taking RMDs), his beneficiary is his wife, age 67.  Does she treat the IRA the same as if it had originally belonged to her late husband or are there special rules because she is the second beneficiary of the same IRA?  What are her options?

Thanks!

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Brother was beneficiary of an inherited IRA. Since he is a nonspouse beneficiary brother was not entitled to treat the IRA as his own. Since he was never the IRA owner, his spouse can not treat it as her own. She continues in the shoes of the prior beneficiary (her husband).

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No, her life expectancy is irrelevant. She can continue the RMDs her husband was receiving, or she can take a lump sum. As always, check the IRA document which may be more restrictive.

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