Rollovers for IRA spouse bene under 59 1/2--can a spouse bene have her

[Guest danmar]

PLRs 9608042 and 9418034 show that a surviving spouse who makes a penalty-tax-free withdrawal from an IRA left in the decedent's name cannot later treat the decedent's IRA as his or her own IRA.

Do you advise your clients to segregate a spousal beneficial IRA in order to withdraw money before 59 1/2 without losing the distribution options available when the IRA is rolled over into the spouses name?

If so, do you think an IRA custodian should prevent a spousal rollover if any pre-59 1/2 money was ever withdrawn from the beneficial account? How strong is the IRS position on this issue?