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Inherited IRA


Spouse Inherited IRA

Spouse as Beneficiary Options

If you have inherited your spouse's pre-tax IRA (Traditional, SEP, or SIMPLE) you can:

1.  Treat the IRA as your own
  • You may re-title the Inherited IRA account in own name (only allowed if you as the spouse are the sole beneficiary); or
  • You may rollover/transfer the funds into your own IRA account
-OR- 

2.  Treat yourself as the beneficiary
  • If the original IRA owner passes before their required beginning date, you have the following options:
    • Use the 5 year distribution rule; or
    • The single life expectancy of the designated beneficiary
Additionally, if the original  IRA owner dies on or after their required date for RMDs, the RMDs are based on the longer of:
  • The single life expectancy  of the designated beneficiary; or
  • The original IRA owner's life expectancy
When the surviving spouse is the sole designated beneficiary and chooses to treat themselves as the beneficiary rather than treat the IRA as their own, distribution rules may differ.   

Please see Instructions in IRS Publication 590-B for more information.

Spouse as Beneficiary: Inherited Roth IRA info

Qualified Distribution Options:

1.  Beneficiary may treat the Roth IRA as their own
  • You may re-title the Inherited IRA account in own name (only allowed if you as the spouse are the sole beneficiary); or
  • You may rollover/transfer the funds into your own IRA account
-OR-

2.  Beneficiary may establish  Inherited IRA using Lifetime Distributions
  • You may distributions payable over the life or life expectancy of the designated beneficiary
    • You must take distributions by December 31st of the later:
      1. Year your spouse would have attained age 70 ½; or
      2. Year after your  spouse died
-OR-

3.  Benficiary may establish Inherited IRA using Five-Year Distribution Rule
  • No annual distributions required, as long as the account is depleted by the end of the fifth calendar year after the year of the original account owner's death

Non-qualified Inherited Roth IRA Distributions:

Generally, non-qualified Roth RMDs taken by the beneficiary are included in the beneficiary's gross income, just as they would be included in the gross income of the original IRA owner.  

Please see instructions in IRS Publication 590-B for more information.

 

Learn about Non-Spouse as Beneficiary Inherited IRA Distributions.

Learn about Inherited IRA Distributions.

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