Permalink Submitted by Alan Spross on Tue, 2008-01-22 05:09
Yes, following the release of PLR 2004-50057 in which the IRS approved the transfer to an inherited IRA. While this is widely done now, since the provision has not been formally incorporated into the tax code, you may occasionally run into resistance from either the IRA custodian or employer plan in getting this transaction completed.
This is a way for the spouse to take distributions from the IRA without penalty because the IRA account interest is that of a beneficiary rather than owner. When the survivor reaches 59.5, they can then assume the inherited IRA as their own or roll it into an existing IRA of their own.
Permalink Submitted by Alan Spross on Tue, 2008-01-22 05:09
Yes, following the release of PLR 2004-50057 in which the IRS approved the transfer to an inherited IRA. While this is widely done now, since the provision has not been formally incorporated into the tax code, you may occasionally run into resistance from either the IRA custodian or employer plan in getting this transaction completed.
This is a way for the spouse to take distributions from the IRA without penalty because the IRA account interest is that of a beneficiary rather than owner. When the survivor reaches 59.5, they can then assume the inherited IRA as their own or roll it into an existing IRA of their own.