Inherited IRA – 2nd generation beneficiary
Son inherits IRA from his parent and names his spouse as his inherited IRA beneficiary.
Question: I son’s spouse upon son’s death required to exhaust the inherited IRA within 10 years or are there other options for the spouse?
Permalink Submitted by Alan - IRA critic on Tue, 2022-01-25 17:40
If son inherited the IRA prior to 2020 and is taking LE RMDs, when he passes his spouse will have 10 years to drain the inherited IRA.
However, if son inherited after 2019 under the Secure Act and is subject to the 10 year rule, his spouse beneficiary will not receive another 10 years upon his death. She will have to drain the inherited IRA in the same year the son would have.
A spouse that inherits an already inherited non spouse IRA does not have the option of electing ownership or otherwise doing the spousal rollover.