What are tax rules if IRA owner dies with an active 72t Plan?
L1: What are tax rules if IRA owner dies with an active 72t Plan?As I perform some estate planning, I came across a matter I’m not sure of. I am 52 and have an active 72t plan. My wife is beneficiary. I was wondering what my wife’s responsibility is wrt to fulfilling the 72t distributions should I pass away before age 59-1/2? I’m hopeful she would not have to continue the 72t plan until I would have been 59-1/2; instead she could establish a survivor’s spouse IRA, rollover the balance I have to it, and do with it as she sees fit. Appreciate the IRS rules as they relate to these matters.2016-12-29 00:14, By: copleym, IP: [22.214.171.124]
L2: What are tax rules if IRA owner dies with an active 72t Plan?The IRS allows the SEPP 72-T to terminate upon “Death, Disability, or insufficient market value to make any more distributions”.
The surviving beneficiary then has the usual options for “Inherited IRA’s”, depending if the person is the spousal or someone else.2016-12-29 00:37, By: dlzallestaxes, IP: [126.96.36.199]