Rollover of Lump Sum Distribution from Deceased’s IRA
If a lump sum distribution (with no tax withheld) has been taken from a deceased’s IRA, can the spouse beneficiary roll that distribution into an IRA in their name within 60 days of the distribution?
Permalink Submitted by Alan Spross on Thu, 2008-06-26 21:12
Yes.
Permalink Submitted by Michael Eischen on Fri, 2008-06-27 12:16
Thank you Alan.
Permalink Submitted by Stephen Olafson on Mon, 2016-05-02 20:30
Based on the OP’s question, what if the surviving spouse receives multiple lump sum distributions from the decedent’s IRA and deposits the funds into her own IRA, would that violate the new one-per-year 60-day rollover rule? Would these even be categorized as 60-day rollovers since the distributions are from the decedent’s IRA and not the surviving spouse’s?
Permalink Submitted by Alan - IRA critic on Tue, 2016-05-03 01:11
Permalink Submitted by David Mertz on Tue, 2016-05-03 04:20
Section 408(d)(3)(B) seems pretty clear that the individual who receives a distribution from an IRA is only permitted to roll over one distribution in a 12-month period. In this case it’s the surviving spouse who receives the distribution. Nothing in section 408(d)(3)(B) exempts the surviving spouse from this limitation.