60-day rollover after death
A client distributes $100,000, but only has an RMD requirement of $80,000. Client dies shortly after the $100,000 distribution, surviving spouse is the sole beneficiary. Can the surviving spouse rollover the “excess” $20,000 to the decedent’s IRA as long as it is deposited within the 60-day window? What about to her IRA if she has already moved the inherited assets but again, makes the deposit within the 60-day window?
Permalink Submitted by Alan - IRA critic on Mon, 2014-09-22 18:43
The excess 20k can be rolled over within 60 days by the client’s executor, but the executor must be careful to avoid creating problems for the estate. The 20k is in the probate estate to begin with, and rolling it over to an IRA will result in the surviving spouse’s IRA receiving the 20k rather than others who might be beneficiaries under client’s will.
Permalink Submitted by John Werhan on Thu, 2017-12-14 01:48
I have a 90-year old client who withdrew funds from his IRA in anticipation of medical expenses but died shortly thereafter. Unbeknownst to me (the advisor) the wife (beneficiary) told Charles Schwab that the IRA owner had died. There aren’t even death certificates yet. I want to roll some of that money back into the IRA on behalf of the deceased. It’s well within the 60-day limit but Schwab will not accept the funds. There are no concerned parties or estate concerns. Why won’t Schwab allow the rollover (deposit)? Can the spouse and I compell them somehow? Thanks,
Permalink Submitted by Alan - IRA critic on Thu, 2017-12-14 02:54
Read this thread, it covers the PLR history of this situation. https://irahelp.com/forum-post/26559-ira-rollover-and-death-owner
Permalink Submitted by Alan - IRA critic on Thu, 2017-12-14 03:00
Can no longer post active links for some reason. Use this site’s search box and enter post 26559. The thread that comes up will have an active link where you can pull up an entire summary of prior PLR activity for decedents who had surviving spouse beneficiaries. Perhaps one or more of these could be presented to Schwab for reconsideration, as applying for your own PLR will cost 15-20k even though the chances are good for approval if the application is professionally drafted.
Permalink Submitted by Ben Meyer on Thu, 2017-12-14 04:40
Click this: https://irahelp.com/forum-post/26559-ira-rollover-and-death-owner