Question

Under the required minimum withdrawal rules that apply when a surviving spouse inherits an IRA from a deceased spouse who dies before the RBD (April 1 of the year after turning 70½): A. The surviving spouse can treat the account as his/her own account. B. The five-year rule always applies. C. The account cannot be left in the name of the deceased spouse. D. The entire account balance must be distributed to the surviving spouse within 90 days of the date of death, with the resulting federal income tax consequences.

Answer 1

Correct answer is option A= The surviving spouse can treat the account as his/her own account.

Explanation :

Generally when deceased spouse dies before the RBD, title will be transferred to surviving spouse if he/she named sole beneficiary.

Option B,C,D are incorrect because of the following.

Surviving spouse have three options to choose among them.

1. Treat inherited account as your own

2. Leave account in deceased spouse’s name

3. Follow the “five-year rule”

Therefore, Five year rule is not manadatory and also account can be left in the name of deceased spouse's name.