Welcome Guest. Register Now!  



Reply
 
LinkBack Thread Tools Search this Thread Display Modes
  #1 (permalink)  
Old 12-20-2011, 11:37 AM
TaxGuru's Avatar
Tax Guru
 
Join Date: Jan 2007
Location: New Jersey, USA
Posts: 2,417
Blog Entries: 3
What happens to an Inherited Account when the Owner Dies prior to their Required Beginning Date (RBD) and the Spouse is the beneficiary?

If the spouse is the beneficiary, he or she will have the option to do one of the following;

1. Roll over the inherited amount and treat as own; Or,

2. Begin distributions the year the owner would have reached age 70½.

The election allowing the spouse to treat the inherited IRA as his/her own can be made at any time after the date of death. "If the spouse elects to treat the retirement account as his/her own, the account no longer qualifies for the 72(t) death exception. This could be quite costly to a potential younger spouse who needs access to the funds and fails to meet any of the other penalty exceptions."

__________________
Find a CPA near you!

Ask TaxGuru Please refer to the legal disclaimer.


Digg this Post!Add Post to del.icio.usBookmark Post in TechnoratiFurl this Post!Reddit! stumble!bookmark in google!Share on Facebook!
Reply With Quote
Ads
Reply



Posting Rules
You may not post new threads
You may not post replies
You may not post attachments
You may not edit your posts

vB code is On
Smilies are On
[IMG] code is On
HTML code is Off
Trackbacks are Off
Pingbacks are Off
Refbacks are Off


Similar Threads
Thread Thread Starter Forum Replies Last Post
CT State now accepts E-Filed Tax Returns Beginning Friday January 14, 2011. TaxGuru Connecticut 0 02-01-2011 01:12 PM
The IRS requires "Many Tax Return Preparers Required to Use IRS e-file Beginning in 2011!" TaxGuru CPA Forums 0 10-13-2010 10:03 AM
Estimated Taxes for new SB owner accountingwiz Estimated Taxes 2 09-19-2009 12:22 PM
Unemployment Benefit for as the owner of S corp 11201 Sole-Proprietorship 0 03-23-2009 11:39 PM
Can 1 50% owner force the dissolution of S Corp? bodell29 S-Corporation 1 01-31-2009 08:59 PM

Follow us on Facebook Follow us on Twitter Google Buzz Rss Feeds

» Categories
 
Individual
 » Income
 » IRA/Sep
 » Medical
 
Corporations
 » Payroll
 
Forum for CPAs
 
Financial Planning
 
 
 

» Recent Tax Q&A
No Threads to Display.