Spousal Rollover….
Our client’s husband passed away last year at an early age of 43. Is there a time frame when the spouse needs to do something with this IRA? Currently the IRA is still in her husbands name.
Our client’s husband passed away last year at an early age of 43. Is there a time frame when the spouse needs to do something with this IRA? Currently the IRA is still in her husbands name.
Permalink Submitted by Alan - IRA critic on Mon, 2015-08-24 17:48
There isn’t a specific time frame and if client is the sole beneficiary her RMDs do not need to commence until the year her husband would have reached 70.5. However, as soon as praticable she should submit the death certificate and have the IRA properly titled as an inherited IRA and name her successor beneficiary on the account. If she passed before doing so, her estate would probably be the default beneficiary and the 5 year rule would apply to whoever the IRA passes to per probate. She should also not risk losing track of the IRA as lack of response will eventually result in the account escheating to the state.