{"id":3463,"date":"2019-01-16T20:16:55","date_gmt":"2019-01-16T20:16:55","guid":{"rendered":"https:\/\/www.ua-cpas.com\/blog\/?p=3463"},"modified":"2019-01-17T15:42:27","modified_gmt":"2019-01-17T15:42:27","slug":"inheriting-ira-from-spouse","status":"publish","type":"post","link":"https:\/\/www.ua-cpas.com\/blog\/index.php\/2019\/01\/16\/inheriting-ira-from-spouse\/","title":{"rendered":"Tax Ramifications of Inheriting your Spouse&#8217;s IRA"},"content":{"rendered":"<div id=\"inner-content\">\n<div class=\"container\">\n<div class=\"row\">\n<div id=\"inner-copy\" class=\"col-sm-12 col-md-9 animate-right animated\">\n<div class=\"row\">\n<div class=\"col-xs-12\">\n<p><span style=\"color: #800080;\"><strong>No one wants to think about losing a spouse, but it\u2019s good to understand how finances work when one does. For example, inheriting an IRA from your spouse can get complicated. Consider the following points.<img loading=\"lazy\" decoding=\"async\" class=\"alignright size-full wp-image-3464\" src=\"https:\/\/www.ua-cpas.com\/blog\/wp-content\/uploads\/2019\/01\/PAPERS5.png\" alt=\"\" width=\"218\" height=\"231\" \/><\/strong><\/span><\/p>\n<p><span style=\"color: #800080;\"><strong>Age is important<\/strong><\/span><\/p>\n<p>It generally makes sense to roll over an IRA inherited from a spouse to your own IRA if you\u2019re age 59\u00bd or older when you inherit it. Why? You can withdraw money from your IRA if you need to without worrying about the 10% early withdrawal penalty. And the rules for taking annual minimum distributions from the IRA won\u2019t apply until you turn age 70\u00bd.<\/p>\n<p>If you\u2019re younger than age 59\u00bd, you may be better off setting up an inherited IRA in your deceased spouse\u2019s name. Withdrawals from an inherited IRA aren\u2019t subject to the 10% early withdrawal penalty regardless of the beneficiary\u2019s age.<\/p>\n<p>With an inherited IRA, most beneficiaries must take required minimum distributions every year based on their life expectancies (generally starting the year after the IRA owner dies). However, with an IRA inherited from a spouse who dies before age 70\u00bd, the surviving spouse can postpone taking required minimum distributions until the year the deceased spouse would have turned age 70\u00bd.<\/p>\n<p>In either scenario, withdrawals\u00a0<em>will<\/em>\u00a0be subject to federal (and possibly state) income tax unless they\u2019re qualified Roth IRA distributions.<\/p>\n<p><span style=\"color: #800080;\"><strong>Look at the big picture<\/strong><\/span><\/p>\n<p>Before making any decisions, meet with one of our financial professionals to review your overall financial situation. For example, maybe you\u2019d be better off spending life insurance proceeds than taking money from an IRA prematurely.\u00a0\u00a0Also, we work together with your investment advisor to review how the IRA assets are invested in terms of your financial needs and overall investment program.<\/p>\n<p>To learn more about tax rules and regulations, give us a call today. Our knowledgeable and trained staff is here to help.<\/p>\n<\/div>\n<\/div>\n<\/div>\n<\/div>\n<\/div>\n<\/div>\n","protected":false},"excerpt":{"rendered":"<p>No one wants to think about losing a spouse, but it\u2019s good to understand how finances work when one does. For example, inheriting an IRA from your spouse can get complicated. Consider the following points. Age is important It generally makes sense to roll over an IRA inherited from a spouse to your own IRA [&hellip;]<\/p>\n","protected":false},"author":3,"featured_media":0,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[6,11,22],"tags":[110,218],"class_list":{"0":"post-3463","1":"post","2":"type-post","3":"status-publish","4":"format-standard","6":"category-estate-trusts-guardianships","7":"category-income-taxes","8":"category-tax-tips-for-individuals","9":"tag-income-tax-planning","10":"tag-iras","11":"entry"},"_links":{"self":[{"href":"https:\/\/www.ua-cpas.com\/blog\/index.php\/wp-json\/wp\/v2\/posts\/3463","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.ua-cpas.com\/blog\/index.php\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.ua-cpas.com\/blog\/index.php\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.ua-cpas.com\/blog\/index.php\/wp-json\/wp\/v2\/users\/3"}],"replies":[{"embeddable":true,"href":"https:\/\/www.ua-cpas.com\/blog\/index.php\/wp-json\/wp\/v2\/comments?post=3463"}],"version-history":[{"count":4,"href":"https:\/\/www.ua-cpas.com\/blog\/index.php\/wp-json\/wp\/v2\/posts\/3463\/revisions"}],"predecessor-version":[{"id":3473,"href":"https:\/\/www.ua-cpas.com\/blog\/index.php\/wp-json\/wp\/v2\/posts\/3463\/revisions\/3473"}],"wp:attachment":[{"href":"https:\/\/www.ua-cpas.com\/blog\/index.php\/wp-json\/wp\/v2\/media?parent=3463"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.ua-cpas.com\/blog\/index.php\/wp-json\/wp\/v2\/categories?post=3463"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.ua-cpas.com\/blog\/index.php\/wp-json\/wp\/v2\/tags?post=3463"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}