Does this qualify for a 60 day rollover?
We have a client who passed in 2024. Wife is the beneficiary. He had an IRA, immediate annuity, 20 yr certain in yr 9.
The insurance company has offered to write a lump sum check to the wife to get out of the contract. Would this situation qualify for a 60 day rollover? Can she take the check made payable to her, from the husbands account and roll it into her own IRA? The insurance company is not offering to do a trustee to trustee transfer.
Permalink Submitted by Alan - IRA critic on Thu, 2025-02-06 16:32
Wife can roll it over as long as she has a 60 day rollover available, not having done any other 60 day rollover of a distribution made in the last 12 months.
There is also a question of RMDs as any RMD amount is not eligible for rollover including the year of death RMD if client did not complete his 2024 RMD before passing.
It will be challenging to determine whether the lump sum distribution is being calculated correctly.