Ex spouse inherits IRA which was accumulated during marriage
IF the current ex-spouse inherits the IRA from her Ex- husband ( which was accumulated during marriage)(Also the divorce was recent) does the current EX have an option as to whether she can stretch as a non spousal bene or can name it in her own name as her own IRA? Thanks in advance..Michael
Permalink Submitted by Alan Spross on Tue, 2010-04-20 00:08
The marital status at the time of husband’s death determines whether spousal options apply or not. If the divorce was final prior to the death and included a court order to transfer all or part of the IRA, then the death would not affect the portion transferred.
Otherwise, non spousal RMD options depend on the usual variables such as the date of death in relation to the RBD, creation of separate accounts if there are multiple beneficiaries etc.