Snidely Whiplash
Recycles dryer sheets
- Joined
- Apr 12, 2009
- Messages
- 206
Spoke with my CPA earlier today, but as my thinking isn't as straight as it should be at times, I was hoping someone here might have some insight. I have full faith in my CPA but this isn't something anyone deals with on a regular basis. And I want to make sure I'm not misunderstanding anything.
Situation: i am 48, wife is 54 and has been diagnosed with incurable and inoperable pancreatic cancer w/ metasticis to her liver. It's a rare form of pancreatic cancer (the Steve Jobs type, not the Patrick Swayze type) but the outlook is still not good. Social Security approved her disability within two weeks of her applying with a backdated date of disability by 6+ months. We are both each other's sole beneficiary for all matters and accounts financial.
Question #1 - Wife has a regular IRA at Vanguard and it probably makes sense for her to withdraw a minimal amount as "fun" money now if we are not subject to the 10% penalty tax. Our CPA indicated that she would be able to begin withdrawals now but that the amount would be set based upon her actuarial life expectancy of 30.5 years. So her withdrawal amount for the next 5 years (until she is 59.5 years old, God willing) would be the current balance of her IRA divided by 30.5. At 59.5 years old she could change the withdrawal amount to whatever she wishes. Does this sound correct?
Question #2 - When my wife dies, I have the option of (1) maintaining the IRA in her name with me as a widower beneficiary and continuing her payouts as described above regardless of my age or stopping the payout completely, or (2) transferring the IRA to my name and it functions as if it were mine in all regards including the withdrawals without penalty starting at age 59.5 for myself. Does this sound correct?
I'm a bit of an OCD type personality so knowing my options ahead of time gives me some peace of mind. I'm grateful for any advice provided.
.
Situation: i am 48, wife is 54 and has been diagnosed with incurable and inoperable pancreatic cancer w/ metasticis to her liver. It's a rare form of pancreatic cancer (the Steve Jobs type, not the Patrick Swayze type) but the outlook is still not good. Social Security approved her disability within two weeks of her applying with a backdated date of disability by 6+ months. We are both each other's sole beneficiary for all matters and accounts financial.
Question #1 - Wife has a regular IRA at Vanguard and it probably makes sense for her to withdraw a minimal amount as "fun" money now if we are not subject to the 10% penalty tax. Our CPA indicated that she would be able to begin withdrawals now but that the amount would be set based upon her actuarial life expectancy of 30.5 years. So her withdrawal amount for the next 5 years (until she is 59.5 years old, God willing) would be the current balance of her IRA divided by 30.5. At 59.5 years old she could change the withdrawal amount to whatever she wishes. Does this sound correct?
Question #2 - When my wife dies, I have the option of (1) maintaining the IRA in her name with me as a widower beneficiary and continuing her payouts as described above regardless of my age or stopping the payout completely, or (2) transferring the IRA to my name and it functions as if it were mine in all regards including the withdrawals without penalty starting at age 59.5 for myself. Does this sound correct?
I'm a bit of an OCD type personality so knowing my options ahead of time gives me some peace of mind. I'm grateful for any advice provided.
.