IRA death benefit received from a Variable annuity
Wife dies and her spouse is the beneficary of an IRA that is invested in a Variable annuity. The cash value of the annuity is $ 80,000 but the death benefit is $125,000.When he receives the $ 125,000 death benefit does he have 60 days to invest in his own IRA without paying taxes?
Permalink Submitted by Alan Spross on Fri, 2009-01-30 17:09
Yes. It should be reported as a rollover on line 15 of Form 1040.