Spousal Inherited IRA Rollover Into Employer Sponsored Plan after Age 72

Submitted by Rick Hallinan on Mon, 2018-08-20 15:33

Client is 72 and inherited Traditional IRA from 65 year old deceased spouse in May 2018. The IRA has been re-titled in the surviving spouse’s name as their own IRA. Client works full-time and has an Employer Sponsored Plan with his current employer. If Employer Plan accepts the rollover can the client avoid RMD while working? If assets are not accepted, what other options to delay RMD may be appropriate?



Submitted by Alan - IRA critic on Mon, 2018-08-20 18:42

  • Yes, a 2019 IRA RMD is avoided by rolling it into an accepting employer plan before year end. There is no 2018 RMD for the IRA. This balance will also avoid RMDs in the employer plan as long as client is still working at the end of each year and is NOT a greater than 5% owner of the company. If the plan will not accept an IRA rollover, there is no way to avoid IRA RMDs starting in 2019.
  • Note that if client had left the IRA titled as an inherited IRA, there would be no IRA RMDs until the year the deceased spouse would have reached 70.5. However, now that the IRA is titled as an owned IRA in the client’s name, it cannot go back to inherited status.

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