Stretch Rules for Spouses who remain beneficiary
I know that if a spouse elects NOT to roll an IRA over and make it their own, they have the option to remain a beneficiary and either a) begin RMD’s by December 31st of the year the IRA owner would have turned 70.5 or b) begin RMD’s by December 31st of the year following the IRA owners death; whichever is longer.
However, if the beneficiary elects to remain as beneficiary and wait until the IRA owner would have turned age 70.5 (for flexibility), can the beneficiary roll the IRA into their name when they turn 59.5? Seems to me like it’s a loophole, yes?
Permalink Submitted by mk foss on Wed, 2010-05-19 23:46
It’s not a loophole – it’s often the best recommendation for a young spouse. There is no time limit for the spouse to decide to roll the IRA into an IRA of their own so waiting until age 59.5 is fine.