Death of IRA Owner before 60 day rollover completed
Convoluted situation –
– 60 year IRA owner/husband withdrew sum from Traditional IRA / Schwab – March 9, 2017
– Needed the amount for a short term need/anticipated funds to replace would be available before 60 days
– IRA owner/husband died unexpectedly
– Surviving wife (not 59 1/2 until October 15 2017) anticipated needed access to funds
– Husband’s IRA was rolled to an Inherited IRA for the wife’s benefit (without thinking/considering the distribution originally)
– Wife now has funds to replace the original rollover
– Schwab is stating the funds can’t be replaced as:
– Deceased husband’s Social Security number is no longer valid
– His IRA account has been closed
Any remedy available ????
Permalink Submitted by Brian Devers on Tue, 2017-04-25 18:12
If the spouse takes the inherited IRA as her own, could she replace the funds within the 60 days ?
Permalink Submitted by Alan - IRA critic on Tue, 2017-04-25 18:27
If the wife is the executor of his estate and sole beneficiary of the IRA, the rollover has a good chance of success based on prior PLRs. Here is a thread about this subject along with several applicable PLRs. As indicated at the end, it may be possible to locate an IRA custodian to accept a rollover into the surviving spouse’s IRA, but I would start by elevating the discussion with Schwab first: https://irahelp.com/forum-post/26559-ira-rollover-and-death-owner
Permalink Submitted by Bruce Steiner on Tue, 2017-04-25 21:08
There are a few rulings allowing an executor to complete a rollover. I obtained the most recent one, PLR 201514020. The others that I’m aware of are PLRs 200450057 and 201035044.Here is an article that I wrote on this subject in the June 2015 issue of Trusts & Estates which discusses this issue: http://kkwc.com/wp-content/uploads/2015/08/IRA-Rollovers-Making-this-option-possible.pdf