Thank you all.
I still have questions….
[2023]
Traditional IRA - Husband’s RMD must be done by 12/31/2023 (Last RMD for him) and his account needs to be closed.
- Assume ownership(Spousal Transfer) , or 2. Open Inherit IRA(Stretch IRA) , or 3. Cash out
If I choose #2 Inherited IRA and start RMD for both TRA/ROTH, I have to start RMD based on my own life expectancy(no 10-year method), but…, BY WHEN? because I found these three explanations as below…
to Start beneficiary RMD
- by December 31 of the year following the decedent’s passing, or
- until the year the decedent would have turned 73*
whichever is later .... So, Does this really mean , like dmertz said, I can start RMD from 2024?
othewise I need to do two separate RMD, one for my husband and for mine for Inherited TRA IRA and one another for my RMD this year...
Also there was a site that said,
- By the DATE the original owner would have turned 73” (?)
Then when I reach 59 1/2, I can take ownership to take out whatever left together with the earnings portion.
ROTH IRA
There is no RMD requirement, or 10% early withdrawal penalty but tax on earnings before 59 1/2.
Am I correct , since my husband’s Roth is over 5 years and he was 72,
whether Assuming or Inherit Roth IRA, I can begin to take out up to contributed amount based on Single Life Expectancy table until I reach 59 1/2, but not touch the earnings until then to avoid being taxed. *I don’t intend to make contributions.
Then when I reach 59 1/2, I can take ownership to take out whatever left together with the earnings portion.
or To cash out, there would be instant tax on any earnings before 59 1/2.
AND To be treated as a beneficiary(inherit), the spouse must take RMDs. If no RMD is taken before the end of the year following the account owner’s death, the account will be deemed to be rolled over to the spouse’s own IRA
With my bank's situation, I should send the manager the link or explanation of inherited ira option to send to their legal team... but I wonder if they can let me take that option...
Thank you very much
