spousal beneficiary dies shortly after husband
Facts:
husband – age 90 dies in May – spouse is primary beneficiary – children as contingent beneficiaries of both IRA(s) and 401(k). Husband was receiving distributions from IRA(s),
but was still working as a less than 5% owner, therefor – he had not yet begun receiving distributions from 401(k)
wife – age 85 dies a month later. she had been ill, and had not rollover over recently deceased spouse’s IRA or 401(k) to herself.
wife did have s small IRA of her own – her children were beneficiaries of this IRA.
Question:
1) Even though she did not formally roll retirement accounts to herself before death, as she was primary beneficiary and was still living at time of husband’s death – must these
accounts her included as part of value of HER estate ?
2) Do children have option to rollover these plans to create “stretch IRAs” ?
Permalink Submitted by Alan - IRA critic on Tue, 2014-01-07 18:07