IRA death benefit
wife is inheriting her husbands IRA-Variable annuity, which the contract value is $31000 but the death benefit is $44000.
If she elects spousal continuance, she only continues at the $31,000.
If she surrenders the policy under the death claim forms she gets the $44,000 and does she still have the right to do a 60 day turnaround for the whole $44000 into another IRA without being taxed?
will she be taxed on the difference from 31,000 to 44,000?
Thanks,
Douglas
Permalink Submitted by Alan Spross on Sat, 2008-03-15 00:22
She can roll over the full 44,000 free of tax. Why does she get less if she assumes ownership?
Permalink Submitted by [email protected] on Thu, 2008-03-20 18:43
that’s what the company does…If she takes the money, they will give her the death benefit, but if she does a spousal cont. she will continue with the contract value, surrender charges are waived and the death benefit will go to heirs in case she passes away.