it is a transfer /non reportable or direct rollover if spous
if spouse is the beneficiary and they decided to take the assets and deposit into her own IRA, should this deposit be coded as direct rollover or something else?
I know if assets go to bene IRA from the deceased it will be coded as non reportable since can not make contributions to a bene IRA.
but what if assets went from deceased to spoused IRA. how is it supposed to get coded?
Permalink Submitted by Alan Spross on Sat, 2009-06-20 03:25
If the surviving spouse assumes ownership of the IRA, it is a non reportable transfer. However, if a distribution is taken and rolled over to survivor’s own IRA, it is a reported death distribution and a rollover contribution. Actually, if a surviving spouse maintains the IRA in inherited status, it is not technically considered a inherited IRA, and the spouse can make a regular contribution to it. But when this contribution is made, the IRA account changes to an owned IRA. It also changes to an owned IRA if the surviving spouse fails to take a beneficiary RMD from the account.