Inherited IRAs and Spousal Rollovers: Today's Slott Report Mailbag | Ed Slott and Company, LLC

Inherited IRAs and Spousal Rollovers: Today's Slott Report Mailbag

By Sarah Brenner, JD
Director of Retirement Education
Follow Us on Twitter: 
@theslottreport


Question:

If the owner of an inherited IRA was required to take RMDs from the IRA prior to his death, can a beneficiary who is younger than age 70 1/2 request QCDs from the inherited IRA?

Note: We understand the beneficiary is required to take RMDs based on the deceased owner's life expectancy because the new owner inherited the IRA in 2019.

Thank you,

Bruce


Answer:

Hi Bruce,

This is an interesting question. A beneficiary of an inherited IRA can do a QCD and use the QCD to satisfy the RMD for the year. However, to be eligible the beneficiary must be age 70 ½ or older. It is the beneficiary’s age that matters. The age of the IRA owner does not. Even if the IRA owner was age 70 ½ or older at death, that would not make the beneficiary eligible for a QCD if the beneficiary was younger than 70 ½.


Question:

Upon death of a spouse, can the IRA of the deceased spouse be rolled over to the existing IRA of the beneficiary spouse, or must it be transferred to a new IRA account of the spouse beneficiary?

Sid


Answer:

Hi Sid,

A spousal rollover can be done to an existing IRA in the spouse beneficiary’s own name, or a new IRA can be set up. Either way will work.


Content Citation Guidelines

Below is the required verbiage that must be added to any re-branded piece from Ed Slott and Company, LLC or IRA Help, LLC. The verbiage must be used any time you take text from a piece and put it onto your own letterhead, within your newsletter, on your website, etc. Verbiage varies based on where you’re taking the content from.

Please be advised that prior to distributing re-branded content, you must send a proof to [email protected] for approval.

For white papers/other outflow pieces:
Copyright © [year of publication], [Ed Slott and Company, LLC or IRA Help, LLC - depending on what it says on the original piece] Reprinted with permission [Ed Slott and Company, LLC or IRA Help, LLC - depending on what it says on the original piece] takes no responsibility for the current accuracy of this information.

For charts:
Copyright © [year of publication], Ed Slott and Company, LLC Reprinted with permission Ed Slott and Company, LLC takes no responsibility for the current accuracy of this information.

For Slott Report articles:
Copyright © [year of article], Ed Slott and Company, LLC Reprinted from The Slott Report, [insert date of article], with permission. [Insert article URL] Ed Slott and Company, LLC takes no responsibility for the current accuracy of this article.

Please contact Matt Smith at [email protected] or (516) 536-8282 with any questions.

 

Find members of Ed Slott's Elite IRA Advisor GroupSM in your area.
We neither keep nor share your information entered on this form.
 

I agree to the terms and services:

You may review the terms and conditions here.