Pension Benefit Lump Sum Option to IRA-BDA
Decedent dies at age of 49 with a 53 year old spouse. No existing IRA for either of them. I would like to direct the Lump Sum pension option into IRA-BDA FBO surviving spouse.
Any suggestions from memebers of the forum as to reg and or code that can be cited to delivering and receiving institutions to avoid the “you can’t do that” intial reaction both are bound to have?
Permalink Submitted by Alan Spross on Sat, 2007-10-27 20:50
The spousal transfer to an existing inherited IRA was approved by 3 PLRS in the 90s, but the key PLR that first allowed the transfer to a newly established inherited spousal IRA was PLR 2004 50057, released in Dec, 2004. Strangely enough, this is still not incorporated into the Regs, despite the fact that the PPA established the same transfer ability for NON SPOUSES. First you need to find an IRA custodian to establish the inherited IRA account, then try to get the transfer done by citing PLR 2004 50057. I believe the resistance to this transfer is waning, so just try to be persuasive. It’s worth the effort to avoid having to mess with a 72t plan for about 6 years.