Sposal Bene IRA
A spouse who originally set up an inherited/bene IRA now wants to move money to her own traditional IRA. Is this transaction considered a transfer or rollover? I tried to do a trustee to trustee transfer from the bene IRA custodian to her existing traditional IRA but my custodian wouldn’t accept it because they were not like-kind registrations. I guess I’ll have to move Bene to Trad IRA at current custodian first then transfer. TA
Permalink Submitted by Alan Spross on Thu, 2011-08-04 17:38
Spousal assumption of the inherited IRA or an actual distribution and rollover to their own IRA is reported as a 1099R distribution and rollover. So you could proceed as planned and then the second transaction to move the funds to the new custodian can be treated as a non reportable transfer of an owner’s IRA. But the actual change from inherited to owned will be reported.
Unfortuneately, the 1099R and 5498 Inst omit specifics for reporting these.