Spousal beneficiary

[Craig Schiller]

Hi Benefits Link users:

Spouse was beneficiary for 100% of plan account. Participant died under age 70 1/2 and had not taken any distributions. Spouse is younger than participants.

Can the spouse rollover the money to his own IRA and not start taking minimums until he is age 70 1/2, or does he have to start when the participant/spouse who died would have turned age 70 1/2?

***** See below from the final regs on MDR******

1.401(a)(9) -3, Q -3(b) Spousal Beneficiary says the distribution must
begin on or before the later of (1) End of calendar year following the
calendar year when the participant dies; or (2) the end of the calendar
year in which the employee would have attained age 70 1/2.

**************

Does the IRA have to be set up as an inherited IRA?

Thanks!

Craig Schiller, CPC

[Belgarath]

Surviving spouse can roll it over to own IRA. See 402©(9).

[Craig Schiller]

Hi Belgarath -

Thanks for the reply. I checked out the code section and it clearly permits the rollover to his own IRA.

Craig