Distribution to Spouse

Owner died, prior to age 73, spouse wants to rollover.

She is 68.

I don'y believe there would be an RMD as he was not 73 when he died in 2024, but of course I could be wrong.

What does the plan say?

He did in 2024, apparently the spouse had rolled over a portion in 2023, which of course I was just informed.

Plan does not say anything, except we know before rollover, an RMD must be taken.

The broker seems to think this is a death benefit, which is entitled to full rollover and therefore not taxable.

Figures, right?

If he has not reach RMD age at time of death and the spouse is the beneficiary I don't see why she couldn't elect a rollover to her own IRA unless there was something in the Plan restricting that.

Agree, no RMD. 

I'd say 5 out of 4.

Date of Birth 4/5/1951, was 73 4/5/2024

Died 5/14/2024

Therefore, if I am reading correctly, no RMD?

TX all.

I'd double check the rules on "death before RBD section of the regs" since the first RMD year year is 2024 but the RBD is not until 4/1/2025. But I think if they die before the RBD it does stop the RMD. I'm just not 100% certain on that.

Assuming a rollover ASAP, wouldn’t an RMD be needed from an IRA by April 1st?

Or are we saying this is a death benefit and will not be subject to RMD.

Sorry for my confusion, we customarily mention that terminated participants (treating a death as a termination) had to take an RMD prior to rollover if at RMD.

No RMD is required because they died before their RBD. Found a 10 year old thread hear that clarified it. Some of the rules have changed slightly in the 10 years since the there have been a few changes to the RMD rules, but dying before RBD still puts you in Non-RMD status.

For full details see §1.401(a)(9)-3 Q&A 1 through 6.