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Inherited IRA question


bzorc
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In 2016, a taxpayer inherited the IRA of his brother, and he elected to stretch the IRA. In 2020, he passes away, and the beneficiary is his spouse.

Question is can the spouse take the IRA as her own and continue payments over her lifetime? Or is she subject to the CARES Act 10 year rule?

Thanks for any replies.

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On 3/9/2021 at 10:14 AM, bzorc said:

In 2016, a taxpayer inherited the IRA of his brother, and he elected to stretch the IRA. In 2020, he passes away, and the beneficiary is his spouse.

Question is can the spouse take the IRA as her own and continue payments over her lifetime? Or is she subject to the CARES Act 10 year rule?

Thanks for any replies.

His spouse is subject to the 10-year rule.  She cannot take it as her own, because she is not the spouse of the original owner. Under the SECURE Act, she is subject to the 10-year rule .

Life and Death Planning for Retirement Benefits by Natalie B. Choate
https://www.ataxplan.com/life-and-death-planning-for-retirement-benefits/

www.DeniseAppleby.com

 

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