Gifting an IRA
Can an IRA be given to another individual while the grantor is still alive? Would this be considered a distribution, or can it remain as the grantee’s IRA? Is a divorce a special situation where an IRA can be transferred as a part of the settlement?
Stephen Benold
Permalink Submitted by Alan - IRA critic on Thu, 2013-02-28 16:25
A divorce or separate maintenance settlement is the only situation in which IRA ownership can change when the owner is still living. To otherwise gift IRA funds, a taxable distribution needs to be taken and the proceeds gifted.