IRAs roll over from a previous employer’s 401k.

Submitted by Mary Hansen-Faris on Wed, 2022-06-15 20:08

oth spouses own their IRAs rolled over from a previous employer’s 401k. While still working and 74, they have each put some of this into their new Employer’s 401k as cash was available in the IRA to lower RMD. One spouse dies. The surviving spouse who is still working is bene for the deceased spouse. Is it necessary to keep the deceased’s rollover Ira separate so the survivng spouse can still put $$ from their rollover Ira into the new employer’s 401K?



Submitted by Alan - IRA critic on Wed, 2022-06-15 20:45

  • It depends on what restrictions the surviving spouse’s 401k has with respect to accepting rollover contributions, in addition to not accepting any non deductible contributions. For example, if that plan will only accept rollovers from a rollover IRA, it also may not accept rollovers from an inherited IRA that the surviving spouse rolled over to their own IRA. 
  • If the deceased spouse was  72 or older, there will be higher beneficiary RMDs unless the surviving spouse assumes ownership and RMDs would then be lower using the Uniform Table unless the surviving spouse is allowed to roll spouse’s inherited IRA that had been assumed into their own 401k plan. Similar options exist for the inherited 401k from deceased spouse. The surviving spouse will have to decide how much of this IRA value should be rolled into the current plan to delay RMDs. Probably safer to keep IRAs inherited from spouse in separate accounts if there is any chance combining with survivor’s rollover IRA might eliminate the rollover option.
  • Finally, all RMDs for the current year must be completed before any rollovers can be made from any of these accounts into other plans.


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