Multiple Primary Beneficiaries

Submitted by Derek Tuz on Mon, 2023-11-27 17:04

This is a clarification questions and where in the IRS Code does it explain this. If I have a 50% of my IRA going to my spouse and than 25% going to each of my kids, Does my spouse lose the ability to combine it with their current IRA? I was told this and that my spouse only option is the 10 year rule. This assuming that all three beneficiaries are listed as primary.



Submitted by Alan - IRA critic on Mon, 2023-11-27 19:17

  • The separate account rules as outlined in IRS Reg 1.401(a)(9)-8 QA 2 indicate that if separate inherited accounts are established for each beneficiary by the end of the year following the year of owner’s death, the RMD rules apply separately to each such account. Therefore, once the 2 kids have established their inherited IRAs leaving your surviving spouse has the only beneficiary, the spouse should be able to elect to assume ownership of the inherited IRA. The following is a link to that regulation:
  • eCFR :: 26 CFR 1.401(a)(9)-8 — Special rules.
  • Plan B is also an option, for instance if one of the kids fails to establish the separate account. Your surviving spouse can take a distribution and do a 60 day rollover to their own IRA, although a portion of that distribution that is a beneficiary RMD would not be eligible for rollover. Such 60 day rollovers are also limited to one over a 12 month period. For these two reasons, assumption of ownership is the best way for the spouse to complete a spousal rollover, but cannot be done until the spouse is the sole remaining beneficiary of the inherited IRA.

Add new comment

Log in or register to post comments