Spouse IRA
I am trying to consolidate IRA’s to one broker. Husband died wife is bene shes 52 may need access to the money. Whats the best way to transfer ira so that she still has access to the money
I am trying to consolidate IRA’s to one broker. Husband died wife is bene shes 52 may need access to the money. Whats the best way to transfer ira so that she still has access to the money
Permalink Submitted by Edward Czapor on Wed, 2008-01-16 15:01
The IRA should be established in a trustee to trustee transfer to an inherited beneficiary IRA as for a non-spouse. She would then be able wiithdraw amounts as needed penalty free. RMD’s are not required until the year her husband would have reached age 701/2. If RMD’s are required, she also has the benefit of recalculating from the single life table instead of a set term as a non-spouse. She also can roll over the IRA to her own at any time, such as when reaching age 591/2, or just prior to the year her husband would have reached age 701/2 depending on husband’s age and fund needs.
Permalink Submitted by Alan Spross on Wed, 2008-01-16 20:57
Good summary.
I would only add that she should name her own beneficiary on the inherited IRA account ASAP.
Permalink Submitted by David J Chapman, CFP on Thu, 2008-01-17 19:50
IRA should be set up on the trustee to trustee transfer as a “spouseal” IRA – not a “non spouse”.