Spousal ROTH Transfer
Spouse died with a ROTH IRA. Can the ROTH Account be transferred to the surviving spouse ? Should the new ROTH account be labeled as inherited ROTH IRA ? Couple is over 59 1/2.
Thanks.
I know the answer if it was an IRA but not sure if the ROTH rules are the same.
Permalink Submitted by Alan - IRA critic on Wed, 2021-01-06 22:49
The Roth rules are the same. The surviving spouse can elect ownership anytime, or will default to ownership automatically if the inherited Roth RMD was not satisfied in any year. Once ownership is attained, all RMDs cease, and the first year of a Roth contribution for either spouse determines the start of the 5 year holding requirement as required for the Roth to be qualified. Since surviving spouse is over 59.5, surviving spouse should proceed to elect ownership. There is no downside to this action. If she already has a Roth IRA, the inherited Roth can be transferred into her current Roth.