Spousal Beneficiary and required distribution date

[Guest kathypeterson]

Spousal beneficiaries are allowed to rollover funds received from a deceased spouse. If money is kept in the orginial plan the spousal beneficiary must start a distribution by the time the participant would have turned 70 1/2. If the money is rolled out is this no longer true? Or is it no longer true in either case now that rollovers are permited?

[jevd]

If the spouse rolled or even assumed the funds in their own name in the case of an IRA, then their age applies. It is now the spouses account. If the deceased accoount owner was 70 1/2 or older then the distribution for the year of death would need to be completed before the rollover or assumption if not already taken.

If funds are kept in the old plan then death distribution rules apply depending on the ages of the account owner and the spouse.