Spousal inherited IRA to take withdrawals prior to 59.5 then rollover to own IRA later
Bill, age 48, dies and his spouse Jill, age 46, is sole beneficiary. Can she convert his IRA to an inherited IRA to take occasional withdrawals prior to age 59.5, avoiding 10% early withdrawal penalty, then later convert to her own IRA post age 59.5 to defer RMDs?
Permalink Submitted by Alan - IRA critic on Tue, 2025-04-22 14:48
Yes.
She should maintain an inherited IRA until she is 59.5 to access penalty free distributions. And there are no beneficiary RMDs required until the year he would have reached age 75, and she will have assumed ownership of the inherited IRA long before then.