inherired ira

Submitted by Peter Hall on Mon, 2016-07-11 19:38

A father dies and leaves his IRA to his son, who sets up an inherited IRA. The son dies and leaves the inherited IRA to his spouse. Does it still remain an inherited IRA from the father or can the spouse transfer it to her own IRA?



Submitted by Alan - IRA critic on Mon, 2016-07-11 22:25

It remains a non spouse inherited IRA and cannot by rolled over by the spouse of the beneficiary. The successor beneficiary spouse must continue the RMD schedule of the beneficiary son, and the IRA would be re titled showing the name of the surviving spouse successor beneficiary and her husband as the decedent.



Submitted by Matthew Campbell on Thu, 2016-09-01 18:57

Is the sons wife as executor of his estate able to set up an inherited ira in his name and when estate settled transfer it to her as the beneficiary of his estate?



Submitted by Alan - IRA critic on Thu, 2016-09-01 20:20

  • If the son named his spouse as his successor beneficiary, the IRA does not become part of his probate estate. His spouse cannot do anything with the IRA as executor.
  • However, if the son failed to name his spouse as his successor beneficiary, the IRA beneficiary clause would most likely state that the IRA would go to son’s estate. In that case, his spouse as executor could assign the inherited IRA to whoever is the beneficiary in his will including herself. RMD calculations would continue as before using son’s life expectancy. If son had no will, the statutes of his state will determine where the IRA goes, most likely 100% to his spouse, but in some states there might be exceptions to that.


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