Inherited IRA Spousal
Can a spouse do the following: husband dies (age 65), IRA custodian advises wife to transfer IRA assets to an inherited IRA, then roll the assets to her own IRA as a spousal transfer.
Thank you.
Jan
Can a spouse do the following: husband dies (age 65), IRA custodian advises wife to transfer IRA assets to an inherited IRA, then roll the assets to her own IRA as a spousal transfer.
Thank you.
Jan
Permalink Submitted by Alan Spross on Tue, 2008-07-29 21:53
Yes, this can be done with an unlimited time limit to make the final transfer. The inherited IRA might be maintained if the survivor is under 59.5 and wishes to tap the account without penalty. At age 59.5, the survivor can assume ownership of the IRA and take penalty free distributions.
If the survivor is the sole beneficiary, they can also just elect to be treated as the owner of the account without transfer activity.