spousal inherited ira

Submitted by Tom Chandler on Thu, 2010-03-04 00:41

I’ve been searching the forum for hours, but can’t find the answer.

I’ve got a client who inherited and ira from her deceased husband(age 60 at death) She is 57 so we moved the IRA into a beneficiary account to preserve access for her.

Question:
– after she becomes age 59 1/2. can she then move the ira into her own ira?
– Source??? I believe Ed’s book “retirement savings time bomb” says you can do this, but I need a specific code or PLR to apease her current tax advisor.

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Permalink Submitted by Anonymous (not verified) on Thu, 2010-03-04 01:05

p. 18 in Pub 590:
http://www.irs.gov/pub/irs-pdf/p590.pdf

If she pays the tax advisor he should be the one acting on this – just an observation 🙂

pko

Permalink Submitted by Tom Chandler on Thu, 2010-03-04 19:08

Thanks, but I’ve been through pub 590. The pub. does not seem to adderss the issue of a surviving spouse having made the account a beneficiary account and then at a latter date transfering the bda back into her own account. The 590 just list the basic three choices of a surviving spouse.

Permalink Submitted by Alan Spross on Thu, 2010-03-04 19:22

Here is a link to the actual IRS Regulation. See Q&A #5 in the attached, which covers the spousal rollover option completely. Note that the rollover can be done at anytime after establishing a bda, ie same year or many years later:

http://www.taxalmanac.org/index.php/Treasury_Regulations%2C_Subchapter_A…

Permalink Submitted by Tom Chandler on Thu, 2010-03-04 19:37

Alan-Oniras;
Excellent.
Thank-You very much for your time and effort!