IRA beneficiaries
Hi:
This should be an easy one, but just want to be sure. IRA owned by and individual and makes his or her spouse the beneficiary, can the spouse do a stretch? That’s it. tks.
I read all about the children, grandchildren doing the stretch, just want to be sure and the spouse as a named beneficiary can to a stretch, I think yes. Thank you.
Permalink Submitted by Al Fry on Fri, 2008-09-12 15:20
A spouse does not have to do a stretch. If spouse is over 59 1/2 the spouse can assume ownership (assuming deceased spouse was older), and can do anything they want until age 70 1/2. If spouse is under 59 1/2 (or if deceased spouse was younger), the surviving spouse can take it as an “inherited” IRA, which means RMD distributions do no HAVE to start until deceassed spouse would have reached 70 1/2, but in meantime spouse can take as much as wanted without penalty. Spouse can later roll inherited IRA to themselves, as their own IRA.