Inherited Successor beneficiary IRA
Hi
I have a client that inherited a successor beneficiary IRA from her spouse in 2016. The IRA was originally owned by the deceased spouse’s father. It was an inherited IRA when he passed and left it to his wife. She was not age 59.5 at the time she inherited the IRA, so we kept it as a successor beneficiary IRA. She is now over 59.5. Can she roll this to a spousal IRA or is the fact that it was started by a non-spouse originally exclude this privilege? Thank you
Permalink Submitted by Alan - IRA critic on Wed, 2023-06-07 19:50
A non spouse inherited IRA will never be eligible for the spousal rollover, therefore it is fortunate that she has maintained it as the successor beneficiary. She should be continuing the RMD schedule that her deceased spouse was using with 1.0 annual divisor reductions, and should have reset the divisors last year to the new 2022 RMD table.