Retirement Planning

Options For A Spouse IRA Beneficiary

 (When The IRA Owner Dies After The Required Beginning Date)

• Rollover the Traditional IRA into the surviving spouse's existing or new Traditional IRA.

If the spouse is the sole designated beneficiary they may also opt to:

• Distribute based on the single life expectancy of the spouse beneficiary, recalculated.

The life expectancy factor is determined using the spouse beneficiary's age as of his or her birthday in each year after the year of the IRA owner's death.

If the spouse IRA beneficiary were to pass away on or after December 31st of the year after the year of the IRA owner's death, distributions may continue based on the remaining life expectancy of the spouse beneficiary, determined on a non-recalculation (term-certain) basis.

Note:

If the spouse is the sole IRA beneficiary and has an unlimited right of withdrawal from the IRA, he or she may elect to treat the IRA as his or her own IRA.

This election may be made at any time but only after the RMD for that year has been taken.

The election is made in the same way as the election would be made if the IRA owner died before his or her Required Beginning Date (RBD).