The SECURE Act may have upended the rules for inherited IRAs, but the rules for spouse beneficiaries remain as advantageous as ever. In fact, naming a spouse as an IRA beneficiary is a better option than ever before. Now, an older spouse beneficiary will get more favorable payout options than a much younger adult child. Why? That is because the adult child must use the 10-year rule. No such restrictions exist for spouses. The SECURE Act keeps all the special benefits for spousal beneficiaries intact.
This past weekend, advisors from all across the country gathered at the Mirage Hotel and Casino in Las Vegas, Nevada to spend two days with the Ed Slott and Company team for our latest Instant IRA Success 2-Day IRA Workshop. Over the two days, there were – no doubt – hundreds of questions asked and answered by our team. Here are three of our favorites, along with the answers.
Ann and Zelda are both 72 years young and now widows after their 74-year-old spouses died this year. Both inherited an IRA from their spouse in the amount of $100,000. Ann’s advisor had her move the funds to an inherited IRA. The account is titled Alan, deceased, IRA fbo Ann. Zelda’s advisor had her move the funds into an IRA in Zelda’s name. The account is titled Zelda’s IRA. There age and circumstances are where the similarities end. Click to read about their different stories.
