What happens when a spouse inherits a TIRA that I took an coronavirus eligible withdrawal from?
I own a TIRA (or 401k, or 403b, or 401a, or Roth IRA).
I withdraw $1,000 on 4-6-2020 as a coronavirus eligible withdrawal.
I pass away in 2021 and I haven’t replaced the $1,000.
My spouse is the 100% primary beneficiary of the TIRA.
Does my spouse have until 4-7-2023 to replace the $1,000 into any TIRA account she owns or inherits from me that accepts rollovers?
Or if not, can you explain what options my spouse has when she inherits the TIRA after I have taken a coronavirus eligible withdrawal?
Permalink Submitted by Alan - IRA critic on Sun, 2020-04-05 01:56
SInce any rollover can only be made for the benefit of the individual who took the distribution, any amount that you did not roll back could not be rolled back by your surviving spouse. This applies to ordinary distributions and equally so for CV distributions. Further, the instructions for Form 8915 (disaster distributions) indicate that the taxable income a deceased taxpayer planned to report over 3 years must be fully reported in the year of death to the extent it had not been reported earlier. In your example, if you elected to report 333.33 of the 1000 distribution in 2020, 2021 and 2022 and you passed in 2021, then 666.66 would have to be reported on your final 2021 return, and the amount that you had not rolled back before passing would be taxable.