Inherited IRA passing to spuse
I have a client who inherited an IRA from his sister. It was retitled as an Inherited IRA. He has now passed away and had his wife as beneficiary. Can she continue with it as an Inherited IRA or does she have to take a full distribution?
thanks for your help.
Permalink Submitted by Alan - IRA critic on Wed, 2016-11-02 23:32
She can continue the RMD schedule that her husband was using, in other words the same divisor he would have used had he lived. She cannot roll it over to her own IRA. If husband had been using the 5 year rule for any reason, she would have to drain the account at the end of that 5 year period.