DECEASED HUSBAND IRA TRANSFER TO WIFE
husband PASSED AWAY WITH IRA. WE ARE TRANFERRING THE VARIABLE ANNUITY WITH NO DEATH BENEFIT AND NO INCOME BENEFIT OVER TO AN MANAGED ACCOUNT.
A. CAN WE JUST SEND A TRANSFER FORM IN WIFES NAME FROM THE NEW MANAGED ACCOUNT TO THE VARIABLE ANNUITY UNDER DECEASED HUSBANDS NAME?
OR
B. DO WE HAVE TO CHANGE THE VARIABLE ANNUITY OVER TO HER NAME BEFORE WE SEND IN A TRANSFER FORM FROM THE NEW MANAGED ACCOUNT?
I DONT WANT TO INCUR A PENALTY OR HAVE THE IRA BECOME ALL TAXABLE.
THANK YOU,
DOUGALS
Permalink Submitted by Alan - IRA critic on Fri, 2016-09-30 22:09
She will have to report his death and have the company record her as beneficiary of the annuity. After that A should work but it is hard to predict how the insurance company will react. Even if the insurer sends a check to the client, she can do a 60 day rollover to the managed account. But a direct transfer is better because it will not use up the one rollover permitted per 12 months.