403B
My wife has a 403B account with the archdiocese of Chicago. She passed away in December 2024 and I wonder if I can leave the funds there without having to pay taxes now. Your advice is appreciated OK
Terry Says
You really should do a rollover. Read this for instructions: https://www.terrysavage.com/rollover-now/
You have two choices as a bereaved spousal beneficiary. You can leave it as an “inherited IRA” and then it must be liquidated within 10 years.
OR, you can roll it into your own IRA, in which case it will be subject to your own RMDs, which must start at age 73.
Not knowing your age, I can’t give advice on which is the better route. But if you are in your early 60’s you might want to roll it into your own — and then deal with RMDs in 10 years (actually slightly longer since those born after 1960 can wait until age 75 to start RMDs).
But if you are currently around 70, then you would want to just do a rollover to an inherited IRA and delay taking withdrawals until the 10th year. (Of course, one big withdrawal that year could impact your Medicare premiums and Social Security taxation.)
If you want to do the “math” go to www.MaxifiPlanner.com and it will tell you the best strategy.
