Spousal rollover
Can a spouse who is a 50% IRA beneficiary still rollover to their own IRA if separate accounts were not created by 12/31 of the year after the owner’s death?
Yes, but this can only be done by distribution and rollover. It cannot be done by assuming ownership because the spouse is not the sole beneficiary. When taking the rollover distribution, the spouse is subject to the one rollover limit per 12 months despite this being an inherited IRA distribution. In addition, a portion of the distribution that is deemed to be a beneficiary RMD is not eligible for rollover. For example, if the other beneficiary is older than the spouse, the inherited IRA RMD will be based on that older beneficiary’s LE, not that of the spouse.
Permalink Submitted by David Mertz on Tue, 2022-12-06 17:29
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