Spousal Inherited IRA
90 year old husband passes in 2014. By marital agreement 80 year old spouse inherits the IRA, but she’s required to name husbands adult children from previous marriage as primary beneficiaries upon her death. (Husband’s 2014 Required Distribution was made prior to death.)
What’s the best way to title the Inherited IRA; as inherited, or roll to her own IRA ?
One of husband’s children is < 59 1/2; the other is 65.
Thanks in advance.
Permalink Submitted by Alan - IRA critic on Sat, 2014-09-27 18:43
Was she named as the beneficiary on the IRA, or was his estate the beneficiary? If she was the designated beneficiary on the IRA, she should roll it over to her own IRA ASAP. Her RMDs will be much lower starting in 2015. Further, the children she will name as beneficiaries will not get their life expectancy stretch if she passes with an inherited IRA.
Permalink Submitted by Donald Withers on Sat, 2014-09-27 18:57
She was named beneficiary directly, not through the will.
Permalink Submitted by Alan - IRA critic on Sat, 2014-09-27 21:17
Ok – response per prior post.