How to handle Required Minimum Distributions when the original beneficiary dies and a successor beneficiary takes over.
survivors
What Options Are Available for a Surviving Spouse Who Inherits an IRA?
First Spouse Program bronze medal (Photo credit: Wikipedia) When the owner of an IRA dies and leaves the IRA to his or her spouse as the sole beneficiary, there are some unique options available for handling this inherited IRA. Keep in mind that these options are only available to a spouse a beneficiary – a non-spouse beneficiary has much more limited options available. Options for a Spousal Beneficiary of an IRA The first and easiest option is for the spouse to leave the IRA exactly where it is and do nothing. In this manner, the IRA will continue to exist as belonging to the deceased spouse – for a time. If the deceased spouse was over age 70½ years of age and subject to Required Minimum Distributions (RMDs), the surviving spouse could elect to continue receiving those RMDs using his or her late spouse’s lifetime as the distribution factor. On […]
Share, tweet, print, email, like or pin this post:
The Social Security Survivor Benefit – Part 1
Image via Wikipedia In a previous article we reviewed the very confusing Social Security Spousal Benefit. That article raised a lot of questions from readers about another confusing provision of the Social Security system: the Survivor Benefit. As with all of these discussions, don’t expect to immediately understand it – this stuff is complicated, and even the Social Security staff often have difficulty explaining it. Read through this carefully, see the referenced articles for background, and then re-read as needed. And ask questions if you have them. The Survivor Benefit is not related to the Spousal Benefit, although certain portions of the article with further explanations of the Spousal Benefit will be useful to review as we discuss the Survivor Benefit. To start with, there are two benefits available to the spouse of a deceased Social Security participant. The first is a small death benefit, amounting to $255 in a […]
Sterling Raskie, MSFS, CFP®, ChFC®
The latest in our Owner’s Manual series, A 401(k) Owner’s Manual, was published in January 2020 and is available on 
A Medicare Owner’s Manual, is updated with 2020 facts and figures. This manual is available on 
Social Security for the Suddenly Single can be found on Amazon at 
Sterling’s first book, Lose Weight Save Money, can be 
An IRA Owner’s Manual, 2nd Edition is available for purchase on Amazon. Click the link to choose the 
Jim’s book – A Social Security Owner’s Manual, is now available on Amazon. Click this link for the 
And if you’ve come here to learn about queuing waterfowl, I apologize for the confusion. You may want to discuss your question with Lester, my loyal watchduck and self-proclaimed “advisor’s advisor”.