Trust as IRA Beneficiary
403(b) client passed away earlier this year. He was age 82 and taking RMDs. Beneficiary is his spouse’s grantor trust. Is it possible for the surviving spouse to roll over the 403(b) to her own IRA? She is 80.
403(b) client passed away earlier this year. He was age 82 and taking RMDs. Beneficiary is his spouse’s grantor trust. Is it possible for the surviving spouse to roll over the 403(b) to her own IRA? She is 80.
Permalink Submitted by Alan - IRA critic on Tue, 2015-12-15 21:45
Yes, there have been several PLRs allowing this. A direct rollover to an inherited IRA for which the custodian will allow a spousal rollover should generally be done first to remove the 403b from the spousal rollover decision, and reduce the chance of having to secure client’s own PLR. The 403b should distribute and remaining year of death RMD to the trust if necessary with only the remaining plan balance included in the direct rollover to the inherited IRA. The IRA custodian would then have to agree to allow a spousal rollover, so finding the right IRA custodian will facilitate things.