Q: My wife’s Mother recently passed away. She was receiving RMD on her IRA (she was 82 when she passed). My wife is her beneficiary on the IRA and she is 56. What Happens now? Does the IRA continue still with RMD but based upon my wife’s age or does the IRA go dormant until my wife reaches age 70? Thanks
A: Thanks for the email.
Your wife has the option to continue taking distributions at the same withdrawal schedule that her mother was or begin taking distributions based on her own life expectancy table. If she elects to begin taking the distributions at the younger level, her distributions will be less and she will be able to stretch the IRA out over a longer period of time. You will find all of the tax rules and information that you need at the IRS website with information on IRAs here http://www.irs.gov/publications/p590/ch01.html#en_US_2011_publink1000230790.
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