EDB for Beneficary IRA
Client passed away at age 59. Ex wife, was beneficiary of 401(k). Ex wife now has beneficiary IRA. Ex wife was 56, so falls in the category of being an Eligible Designated Beneficiary. Question: can ex wife’s account become her own IRA, or does it need to stay in the Beneficiary IRA form? Considering she does not have to take distributions until her RMD age of 72, I was wondering if the account could be transferred into her name only.
Permalink Submitted by Alan - IRA critic on Mon, 2022-11-28 22:30
If they were divorced at the time of client’s death, she is treated like any other non spouse beneficiary. She cannot do a spousal rollover to her own IRA. If client passed prior to 2021, please advise.