One rollover per 12 months and death
Client’s deceased spouse had three IRA annuities at different firms that she received checks from and wants to rollover to her own IRA within 60 days. Does the one rollover per 12 months rule apply when you received the distributions from your deceased spouse’s IRAs?
Permalink Submitted by Alan - IRA critic on Wed, 2022-05-04 18:42
Yes, it applies because it is being made to the beneficiary and the 1099R is issued under the beneficiary’s SSN. She should have elected to assume ownership of the inherited annuity and then done a non reportable direct transfer to her own new or existing IRA. If she still has the checks, one of them can be rolled over and perhaps the others should be converted to a Roth IRA if she wants to keep the funds in a (tax free) deferred retirement account. Finally, if spouse did not complete his 2022 RMD, some of these distributions are not eligible for rollover because she is required to complete the RMD. If spouse had several accounts, his 2022 RMD could have been completed in any combination from those accounts, and therefore his RMD status needs to be determined before acting.