First RMD question

[Plantman]

My wife is turning 73 this year and will be taking her first RMD. Can she transfer it in kind to our joint taxable account even though the taxable account is attached to my social security number or does she need to open a taxable account with her own social security number?

 

[Sunset]

She should open her own taxable account, it's statistically going to be needed later anyhow. And this is going to be a repeating event.

She could withdraw the RMD as cash to her bank account, and then it could go into your account and you could buy investments, but that's a lot of effort each year.

One issue with doing In kind transfers is they are not exact, so double checking and overshooting the amount is often needed.

 

[audreyh1]

If they have a joint account, then transfers to that from an IRA is not a problem and his wife will still have access if something happens to him. I expect his wife’s SS is also on that account.

The in kind part - depends on the brokerage. You probably want to review with them what securities can be transferred in kind.

 

[SecondCor521]

Most custodians should be able to do in-kind.

No problem depositing it into a joint account as long as you're legally married.

She can set up a separate account if there is a divorce or when you die. Until then, it's not really needed.

 

[audreyh1]

Joint accounts usually just get retitled when one of the account holders die assuming it’s set up with rights of survivorship.

I don’t think you have to be legally married.

 

[SecondCor521]

Joint accounts usually just get retitled when one of the account holders die assuming it’s set up with rights of survivorship.

I don’t think you have to be legally married.

You can have a joint account with anyone, but if you're not married, then gift tax rules come into play. Or more precisely, the unlimited spousal gift exception wouldn't apply.

In my experience, even with JTWROS, a new account is opened. Perhaps it varies by institution.