Surviving spouse
Spouse Inherited IRA Options
A surviving spouse can usually treat the IRA as their own, roll it into their own IRA, or remain a beneficiary. The best choice depends mainly on age, near-term access needs, and each spouse’s RMD timing.
What to know first
- Only a surviving spouse can generally roll an inherited IRA into an IRA in their own name.
- An own-IRA rollover uses the surviving spouse’s RMD schedule and early-distribution rules.
- Keeping beneficiary status can preserve penalty-free access before age 59½.
- The election can change future RMD timing, so compare both spouses’ ages before moving the account.
Treat the IRA as your own
A spouse may redesignate the inherited account as their own or roll the assets into their own IRA. Future RMDs then follow the surviving spouse’s age and account type.
This can be attractive when the survivor is younger and does not need the money. But withdrawals from the survivor’s own traditional IRA before age 59½ can trigger the early-distribution additional tax unless an exception applies.
Stay as beneficiary
Keeping the account titled as an inherited IRA preserves the rule that beneficiary distributions are not subject to the 10% early-distribution additional tax. It may be useful when a younger spouse needs access.
RMD timing depends on the original owner’s age, date of death, and the spouse’s election. Confirm the distribution calendar before completing a rollover because custodial paperwork can be difficult to reverse.
Model your inherited IRA deadline
Use the inherited IRA calculator to compare the 10-year rule, annual beneficiary RMDs, and eligible designated beneficiary schedules.
Open the inherited IRA calculatorFrequently asked questions
Can a spouse use the inherited IRA 10-year rule?
A spouse has more options than most beneficiaries and may use beneficiary treatment, life-expectancy rules, or an own-IRA rollover depending on the facts.
Why keep an inherited IRA before age 59½?
Inherited IRA distributions generally avoid the 10% early-distribution additional tax, while withdrawals from an IRA treated as the spouse’s own may not.
Sources
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