Spouse Inherits IRA
Spouse inherits husbands IRA. Beneficiary designations are 25% spouse and 75% trust. Company is saying that since spouse is partial beneficiary, her account must go into a beneficiary IRA and she can not create her own IRA. is that correct?
thank you
Permalink Submitted by Alan - IRA critic on Tue, 2022-11-22 18:34
No. She can set up the beneficiary IRA by the end of the year following husband’s death, and then elect to assume ownership of it because under the separate account rules, she is treated as the sole beneficiary of the separate account. Plan B if the IRA custodian refuses is to either transfer the separate inherited IRA to another custodian or take a distribution from it and roll over the amount in excess of any beneficiary RMD to her own IRA within 60 days. Note that the one rollover limit for 12 months applies to this 60 day rollover.