pb4uski
Give me a museum and I'll fill it. (Picasso) Give me a forum ...
^^^ If your spouse inherited your IRA and adopts it as their IRA and later dies the beneficiaries have 10 years from the second death, not the first.
^^^ If your spouse inherited your IRA and adopts it as their IRA and later dies the beneficiaries have 10 years from the second death, not the first.
Right.
And this is why it's sometimes a good idea for the first spouse to pass to leave maybe 50% of their tax-deferred money to the ultimate beneficiaries rather than 100% to surviving spouse.
If this way, the ultimate beneficiaries get up to twenty years to withdraw the combined tax-deferred funds from the spouses...
Interesting idea... food for thought.
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This is from NerdWallet, and until we can meet with our CPA, this will serve as guidance --
Inherited IRA rules for spouses
If you're the sole beneficiary of your spouse’s IRA, you can take over the account (also known as a spousal transfer or “assuming” the IRA), and the IRS will treat it as though it has been yours all along. This means that you can continue to make contributions to the inherited IRA, and the schedule for required minimum distributions is reset so that it’s based on your own life expectancy.
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And this is why it's sometimes a good idea for the first spouse to pass to leave maybe 50% of their tax-deferred money to the ultimate beneficiaries rather than 100% to surviving spouse.
If this way, the ultimate beneficiaries get up to twenty years to withdraw the combined tax-deferred funds from the spouses...
IF that nerdwallet point of sole beneficiary is true.
Then one would have to make sure their IRA was split into 2 separate ones.
I’m one of several beneficiaries
You’ll be required to inherit the IRA (assuming an IRA is only available to spouses named as the sole beneficiary). But, after you inherit the IRA, you can choose to assume it later.
IF that nerdwallet point of sole beneficiary is true.
Then one would have to make sure their IRA was split into 2 separate ones.
However, if you receive a distribution from your deceased spouse's IRA, you can roll that distribution over into your own IRA within the 60-day time limit, as long as the distribution isn't a required distribution, even if you aren't the sole beneficiary of your deceased spouse's IRA.