Inherited IRA to regular IRA
I have a client that when her husband died the IRA transfer was not done correctly.
Instead of a spousal assumption the advisor at the time titled it as an Inherited IRA.
Question is since she was the spousal beneficiary and the correct way should have been for her to make the IRA her own – is there a way a process to get that converted to her own IRA as it should have been at death of spouse and of the Inherited IRA registration?
Permalink Submitted by Alan - IRA critic on Sun, 2022-11-27 20:24
In some cases the inherited IRA should remain that way for a time, at least until the surviving spouse reaches 59.5. Another such situation where maintaining the inherited IRA is helpful is when the deceased spouse passed prior to age 72, and the surviving spouse is over 72 and wishes to postpone RMDs until the deceased spouse would have reached 72. But she can still assume ownership at anytime and should do so if neither of the above situations applies here. She just needs to advise the IRA custodian that she is electing to assume ownership of the inherited IRA. This is treated as a non reportable transfer.