Inherited Roth IRA
Husband died and spouse is the sole beneficiary. She will treat the IRA as her own. Husband already made the maximum 2021 contribution. Can wife still make a 2021 contribution after she takes over the ownership?
Husband died and spouse is the sole beneficiary. She will treat the IRA as her own. Husband already made the maximum 2021 contribution. Can wife still make a 2021 contribution after she takes over the ownership?
Permalink Submitted by Alan - IRA critic on Thu, 2021-10-21 14:55
Yes. She would first notify the custodian that she is assuming ownership of the Roth. The custodian will probably then transfer the balance to a new Roth IRA under her SSN. She can then make her own Roth contribution assuming their 2021 MAGI is not too high. If she has no earned income, she can use husband’s earned income to make a spousal Roth contribution.