@poorchip
Your plan seems sound.
I should point out that I said your wife would have to follow the 5 year rule regarding her inherited IRA, while @dmertz indicated the 10 year rule. I think dmertz is probably correct, and they certainly have a higher level of knowledge than I do, and I am struggling to get through that section of publication 590-B. However, the 10 year rule as I understand it says the balance must be withdrawn before the end of 10 years but there is no RMD in the mean time. dmertz indicates there are pending new regulations that would require annual RMDs in addition to the requirement to distribute the entire amount by the end of 10 years. I don't see such a requirement in the current version of publication 590-B, but I might be missing something. Remember that the immediate distribution counts for 2021, so if an RMD is needed in 2022 from the inherited IRA, it also has to be taken before Dec 31. If you would prefer to not take a distribution, check back here in November for an update on the regulatory situation.
