IRA owner distributed entire IRA and then died before roll
IRA (over 70 1/2) owner took a 100% distribution from his IRA, had 10% withheld, and put the proceeds in his checking account. He then changed his mind one week later and decided to roll over the proceeds. He then died three days later before he could roll it over. His wife was the sole beneficiary of the IRA. I’m assuming that the wife can not roll over the proceeds into her IRA and it’s a “done deal” in the checking account. Can someone verify this?
Permalink Submitted by Alan Spross on Fri, 2011-01-14 18:26
I believe that there are letter rulings allowing the surviving spouse to do a rollover (for amounts in excess of the RMD) if done within 60 days, and perhaps the 60 day time limit can be extended also due to grief over spouse’s death. But I need to locate some PLR #s allowing the surviving spouse to roll over the pre death distribution.
Permalink Submitted by Bruce Steiner on Fri, 2011-01-14 19:12
Depending on the facts, it may be possible to get a favorable ruling on this. See Gunther v. United States, 573 F. Supp. 126 (W.D. Mich. 1982), the temporary regulations under former Section 4981A, Rev. Proc. 2003-16, and PLRs 200405011, 200415012, 200418045, 200420037, 200502050, 200516021, 200516022.
Bruce Steiner, attorney
NYC
Permalink Submitted by Andy Nicholl on Fri, 2011-01-14 21:09
Thank you Alan and Bruce.