Facts: A spouse is the designated beneficiary of an IRA owner. Owner dies when both owner and spouse are over age 70 1/2.

If the spouse elects to treat the account as her own or to rollover the account to an IRA of her own, can she have a designated beneficiary?

If her required beginning date is April 1 of the calendar year in which she attained age 70 1/2 (years ago) she would not have had a designated beneficiary on that date. Thus, only her remaining life expectancy (owner was recaluculating) can be used for determining required minimum distributions. The spouse can designate a beneficiary, but that beneficiary would not be a designated beneficiary.

Can anyone confirm that this is the right analysis or point me to a Code or regulation provision that would permit a spouse beneficiary over age 70 1/2 to have a designated beneficiary? Thanks.

Subsequent to posting the above message, I found some PLRs in which the IRS ruled that a surviving spouse over age 70 1/2 a the time of the IRA owner's death after the required beginning date can have a Designated Beneficiary. In the case of a survivivng spouse over age 70 1/2 who elects in the year following the IRA owner's death to treat the IRA as his or her own or roll over the IRA to an IRA of his or her own, the surviving spouse can have a Designated Beneficiary provided that the designation is made prior to December 31 of the year following the year in which the election or rollover is made.