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Spousal IRA Options – Finger Financial Five #129

“Death is not the opposite of life, but a part of it.” – Haruki Murakami

The death of a spouse can be a trying time. I know. My dad died over 20 years ago, and I have seen what my mom went through. Fortunately, she was able to lean on me, and other professionals we work with. 

Knowing whom you can rely on to help you make the right decisions can alleviate tremendous stress and reduce the chances of mistakes. 

When a spouse dies, one of the many decisions that need to be made is what to do with the IRA.

The surviving spouses have a few options when they inherit IRA accounts.

First, they can roll the deceased IRA into their own IRA. This is called a spousal rollover. They may not want to do this if they are under 59.5 years old. Why? Because they would be subject to a 10% penalty on withdrawals. 

This leads us to the second option. The survivor could remain an Eligible Designated Beneficiary of the deceased spouse’s IRA. 

So, in this case, they could withdraw money from the IRA as a beneficiary without penalty. Once the surviving spouse reaches 59.5 years old, they can do a spousal IRA rollover to their own IRA.  

There are many more nuances with these options. So, please discuss your situation in detail with knowledgeable people.

Let me know if you have any questions. You can email me at [email protected] or click here to schedule a phone appointment.

We are also having a market update webinar on April 25th at 9am. 

Click this link to register. 

On the lighter side, Riverbend may move to a much larger space in the next few weeks. We will be very close to our current location. Stay tuned!

I hope all is well with you and your family,

Jeremy

Finger Financial Five – 5 points in 5 minutes or less – is to provide you with a weekly shot of useful financial information.  My intention is to share principles, so that you will have more clarity and peace, that help you make better financial decisions. 

Investment advice offered through Stratos Wealth Advisors, LLC, a registered investment advisor.  Stratos Wealth Advisors, LLC and Riverbend Wealth Management are separate entities. 

This content is developed from sources believed to be providing accurate information and provided by Riverbend Wealth Management. The opinions voiced in this material are for general information only and are not intended to provide specific advice or recommendations for any individual. Stratos Wealth Partners and its affiliates do not provide tax, legal or accounting advice. This material has been prepared for informational purposes only, and is not intended to provide, and should not be relied on for, tax, legal or accounting advice. You should consult your own tax, legal and accounting advisors before engaging in any transaction.

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