Inherited IRA from Deceased Spouse to Surviving Spouse
Client A, age 65, receives an inherited regular IRA from her mother, who had begun her RMD. Client A then passes away the next year after taking her first RMD and her husband, age 65, client B, then inherits the IRA. Can B roll over the inherited IRA into his regular IRA, disregarding the inherited aspect or must B retain the integrity of the inherited IRA? If he does have to follow the inherited rules, does he use her distribution schedule or set up his own?
Permalink Submitted by Alan Spross on Mon, 2012-05-21 21:01
Client B cannot roll over the non spouse inherited IRA and must maintain the RMD schedule that applied to Client A.
The preferred title format in this situation should be “B as successor beneficiary of A”, unless the IRA custodian cannot accomodate that format in their processing platform.