Separate trust beneficiary of IRA instead of spouse
Need some help. 75-year-old married couple each had their own separate living trusts. 75-year-old male passes in 2022, and had his own trust as the IRA beneficiary. Spouse is sole beneficiary and is trustee of the trust. Spouse has already rolled the account into an inherited IRA owned by the decedent’s trust.
Question: Can she somehow do a 60-day rollover into her own IRA?
Permalink Submitted by Alan - IRA critic on Wed, 2022-08-17 00:22
If the trust allows it and the IRA custodian cooperates, there are plenty of PLRs that allow the surviving spouse do execute the spousal rollover. Those PLRs treat such rollovers as coming from the deceased spouse’s own IRA, not from the trust. She should also be aware of the one rollover limitation and do these transactions by direct transfer and not 60 day rollover. The one rollover rule for spouse’s own IRAs includes rollovers from inherited IRAs to the spouse’s own IRA, therefore the surviving spouse might not have a rollover available until a year has passed.