Question

Annette Robinson is a sixty-three-year-old recent widow. Annette is attempting to do some tax and investment planning pertaining to her late husband’s traditional IRA account. She is seeking your advice as to the best course of action. She has informed you that her husband was sixty-nine at the time of his death and had not started taking a RMD.

What are the three distribution methods available to Annette?

Answer 1

1	Annette can withdraw the entire balance wihtin 5 years. Taxes would be applicable om withdrawal
2	She can start taking regular distributions on a annual basis. Life expectancy calculation would be similar to her husband's when he had reached 70.5 years.
3	She can roll over the assets into her her IRA account, instead of treating his like a separate account. It will be treated like her own IRA account. She neednt make distributions with the short time period.