Spouse IRA
I have a client that died leaving his spouse his IRA in a Variable Annuity. If the annuity pays out a death benefit directly to her, can she then roll it to her own IRA or does it have to go directly sponsor to sponsor?
I have a client that died leaving his spouse his IRA in a Variable Annuity. If the annuity pays out a death benefit directly to her, can she then roll it to her own IRA or does it have to go directly sponsor to sponsor?
Permalink Submitted by Jose Morales on Thu, 2009-01-22 22:48
Spouse beneficiaries are the only beneficiaries that are allowed to rollover a death distribution to their own IRA.
Permalink Submitted by Alan Spross on Thu, 2009-01-22 23:03
She can roll it over to her own IRA. If she is under 59.5, she may want to set up an inherited IRA account instead of her own, and have the death benefit transferred to the inherited IRA account. She can then take penalty free distributions prior to age 59.5.