Permalink Submitted by mk foss on Wed, 2011-02-09 20:17
A surviving spouse beneficiary can roll the inherited benefits directly into a new or existing tradtional IRA in his/her name. Alternatively, if the benefits are first transferred to an inherited IRA, they can be rolled to an IRA in the spouse’s name at any time. The only restriction is that it must occur during the survivor’s lifetime.
Permalink Submitted by Alan Spross on Wed, 2011-02-09 21:27
Surviving spouse can assume ownership anytime, and generally it is better to do so unless one of the following situations exists:
1) Surviving spouse is not yet 59.5 and needs or may need funds prior to reaching 59.5. Leaving the IRA in inherited form allows the spouse to take penalty free distributions and also allows the spouse to avoid establishing a 72t plan to distribute amounts penalty free.
2) Sole surviving spouse is over 59.5, does not need distributions and deceased spouse would not yet have reached 70.5. Leaving the IRA in inherited form allows survivor to avoid taking RMDs until the year the deceased spouse would have reached 70.5
Permalink Submitted by mk foss on Wed, 2011-02-09 20:17
A surviving spouse beneficiary can roll the inherited benefits directly into a new or existing tradtional IRA in his/her name. Alternatively, if the benefits are first transferred to an inherited IRA, they can be rolled to an IRA in the spouse’s name at any time. The only restriction is that it must occur during the survivor’s lifetime.
Permalink Submitted by Alan Spross on Wed, 2011-02-09 21:27
Surviving spouse can assume ownership anytime, and generally it is better to do so unless one of the following situations exists:
1) Surviving spouse is not yet 59.5 and needs or may need funds prior to reaching 59.5. Leaving the IRA in inherited form allows the spouse to take penalty free distributions and also allows the spouse to avoid establishing a 72t plan to distribute amounts penalty free.
2) Sole surviving spouse is over 59.5, does not need distributions and deceased spouse would not yet have reached 70.5. Leaving the IRA in inherited form allows survivor to avoid taking RMDs until the year the deceased spouse would have reached 70.5