There are four main options a widowed spouse can make when it comes to inheriting Traditional IRA assets as a direct beneficiary (i.e. not through a trust). Those options are: 1. Rollover assets into an IRA in your name 2. Rollover the assets into an Inherited IRA account 3. Take the assets out for spending
Can a widow rollover an IRA into her own name?
Widows should carefully consider their options before making a decision about how to handle an IRA passed to them from their spouse. Surviving spouses are the only inheritors allowed to rollover assets into an IRA in their own name.
Can a working spouse contribute to a traditional IRA?
If the working spouse is covered by an employer-sponsored plan, their ability to deduct any, some, or all of their traditional IRA contributions will depend on their modified adjusted gross income and tax filing status. These rules are explained in IRS Publication 590-A, which is updated annually.
Can a widow file taxes after the death of a spouse?
Qualifying widow(er) If you qualify, you can use this filing status for the two tax years after the death of your spouse. However, you can’t use it for the year of death. To qualify, you must meet these requirements: You qualified for married filing jointly with your spouse for the year he or she died.
When do I start taking distributions from my spouse’s IRA?
If the IRA owner dies after the required beginning date ( RBD) to take distributions and his/her beneficiary is his/her spouse, the spouse beneficiary may either: Begin death distributions by Dec. 31 of the year following the year the IRA owner dies.
Can a deceased spouse’s IRA be rolled over to a living spouse?
If a surviving spouse receives a distribution from his or her deceased spouse’s IRA, it can be rolled over into an IRA of the surviving spouse within the 60-day time limit, as long as the distribution is not a required distribution, even if the surviving spouse is not the sole beneficiary of his or her deceased spouse’s IRA.
