deceased spouse’s IRA
My husband passed away in March and I now have the option of rolling over his IRAs into my name. I have 403b retirement accounts he does not. Should I keep the accounts separate and not consolidate them? We both have started RMD’s. How does the rollover with or without consolidating effect my required RMDs from this point on? What do you recommend?
Terry Says
I am sorry for your loss. As for advice, first you MUST keep these accounts separate.
And you DEFINITELY must keep your own retirement plans separate from his.
New rules just went into effect for inherited IRAs from a spouse. I am going to give you a link to a very thorough article on this topic posted by Fidelity.
This first paragraph is especially relevant:
As a surviving spouse, you have one option that nobody else has: rolling over inherited IRA assets into an IRA in your name and treating those assets as if they were your own. This may be a good choice if you don’t have an immediate need to tap into your spouse’s IRA assets and you are looking to keep the money in a tax-advantaged account for as long as possible. If you have not reached age 72, but your spouse had, this option enables you to delay taking distributions until you reach age 72 rather than continuing your spouse’s RMDs.
Additionally, should your spouse have already begun taking RMDs but not taken the required amount before their passing, you will need to take the RMD for the current year. This RMD is calculated based on your age, your spouse’s age, and the appropriate corresponding life expectancy per IRS rules.
Be sure to ask for advice from your IRA custodian. But since a lot is involved here, make sure you talk with someone who is aware of these new rules. And if all else fails, go to www.IRAHelp.com and search for an IRA Rollover Expert on Ed Slott’s team.
