Hi everyone,
Thank you for your responses!
So, yes, my husband turned 72 late last year(1950) and started RMD at the end of December 22. Passed away on April 20th 23. He would have been 73 this November.
Therefore, no 10year or even 5year rules, and
If I choose inherited TRA IRA route, I will need to start distribution(single life expectancy table) by the end of this year, I cannot wait until 12/31 of the year 2024 to decide what to do, correct?
Cash out option: If I choose to cash out TRA IRA or ROTH, no 10% penalty for being under 59 1/2 , correct?
I find there are two kinds of inherited IRA,
one is Inherited IRA(maintain as a beneficiary) the other is Assuming IRA(treat it as my own).
I went to our bank to discuss my route , the branch manager had contacted their legal team,
and their answer was,
I have only two options, which are
Cash IRA(s) or
Roll over in my name (Assuming IRA as my own) - cannot distribute money until 59 1/2 without penalty.
Rolling over in this case means Spousal transfer, which treats it as my own IRA.
and kept telling me that they need to close his TRA/ROTH IRA accounts, upon which they automatically become an Inherited IRA ... which I didn't understand why they don't know about Inherited IRA which allows me to withdraw upon Life expectancy method.
