IRA Beneficiary
Can a spouse beneficiary (sole 100% primary beneficiary) of a deceased IRA owner use the 60 day rollover rule if they want to transfer the IRA from one financial firm to another?
Can a spouse beneficiary (sole 100% primary beneficiary) of a deceased IRA owner use the 60 day rollover rule if they want to transfer the IRA from one financial firm to another?
Permalink Submitted by Alan - IRA critic on Tue, 2019-03-12 16:23
Yes, but a 60 day rollover to the surviving spouse’s IRA is subject to the one rollover limit per 12 months, and the beneficiary may not even have such a rollover available. To avoid possible issues, the beneficiary should advise the current custodian that they are electing to assume ownership of the inherited IRA. That is not a reported distribution, but the client can then do another non reportable direct transfer to the desired new custodian. This will result in the client still having a 60 day rollover available for the next 12 months. This also eliminates any tax reporting since no 1099R would be issued for either of those changes.