distributions to deceased spouse
The facts are the husband died, and when IRS annuity was rolled over to the spouses,
it was not labeled inherited IRA. The Annuity company would not fix their mistake.
The IRS charged a early distribution penalty which we fought and won. We have a “no change letter” from the IRS Operations Manager in Examination. Every year we fight this and are successful. Since the IRS is in an aggressive mood for money, they are not giving in on the 2011 tax year. Any suggestions how to proceed.
Permalink Submitted by Alan - IRA critic on Tue, 2013-11-26 18:10
When will the wife reach 59.5? Is there clear evidence that the surviving spouse intended for the IRA to continue in inherited status? What does the IRS letter cite as the reason for waiving the penalty in the past? Unless there are solid grounds to proceed against the insurance company, the spouse might have to consider a 72t plan for the penalty waiver.