Spousal Rollover
When the IRA owner dies, and the spouse is the beneficiary, the spouse wants to move her husband’s assets to her own IRA.
Is this considered a reportable spousal rollover (4G) or a trustee to trustee transfer to her own IRA?
When the IRA owner dies, and the spouse is the beneficiary, the spouse wants to move her husband’s assets to her own IRA.
Is this considered a reportable spousal rollover (4G) or a trustee to trustee transfer to her own IRA?
Permalink Submitted by Alan - IRA critic on Tue, 2024-11-19 12:42
This should be done by assumption of ownership because assumption is a non reportable transfer (no 1099R and no reporting on Form 1040) and does not use up the one permitted 60 day rollover for 12 months that a distribution would. Further, any actual distribution from the inherited IRA which is determined to be a beneficiary RMD or a completion of the decedent’s year of death RMD is not eligible for rollover.
The term “spousal rollover” has been used to describe both an actual distribution as well as ownership assumption, even though the preferred assumption is technically NOT a rollover because there is no reported distribution.