IRA Annuity Settlement Isue
I have a client who passed away in September, and his wife was the beneficiary of an annuity IRA. She checked a box on the beneficiary claim form that gave her a settlement option at 2% interest. It was her assumption that it would move to an IRA for her, but when she received notice, the account had been ‘settled’ according to the annuity company. They explained to her that it was no longer an IRA. We would like to do a 60 day rollover, but I’m unsure if we can at this point. Help!
Permalink Submitted by Alan - IRA critic on Tue, 2017-11-07 16:38
Since this is a spousal beneficiary, she can roll the proceeds over to her own IRA up to 60 days from the date she received the distribution. However, to the extent that the client had not completed his 2017 RMD for this account, she cannot roll over that portion of the balance. If client completed his entire RMD for all accounts before passing, then no part of the annuity IRA balance distributed would be considered an RMD.