My spouse is the primary beneficiary of my IRA. I also have a contingent beneficiary. Can my spouse still transfer my IRA assets tax-free to her own IRA?

By Denise Appleby AAA
A:

A spouse who is the sole primary beneficiary of an IRA can always treat the IRA as his or her own. The contingent beneficiary on an IRA is never taken into consideration unless the primary beneficiary predeceases the IRA owner, or the primary beneficiary disclaims the assets.

If the spouse is not the sole primary beneficiary, he or she can transfer the assets to an inherited/beneficiary IRA and later roll over the amount to his or her own IRA.

For more information, read Who Is The Beneficiary Of Your Account?, Problematic Beneficiary Designations - Part 1 and Disclaiming Inherited Plan Assets.

This question was answered by Denise Appleby
(Contact Denise)

RELATED FAQS

  1. Should I purchase a master limited partnership (MLP) in my retirement account?

    Learn why investors may have to pay taxes on dividends from master limited partnerships, or MLPs, held in individual retirement ...
  2. What are the tax implications of owning a master limited partnership (MLP)?

    Learn about the tax benefits of owning units in a master limited partnership, and understand how distributions are treated ...
  3. How should I invest the money I keep on my IRA?

    For individuals who are just starting to save, certificates of deposit can be a good place to start, but the interest rates ...
  4. Why choosing the right investment adviser is crucial for your portfolio's health

    Absolutely! Just as finding a good mechanic will help keep your car running smoothly, finding a good broker or financial ...
RELATED TERMS
  1. Current Service Benefit

    The amount of pension benefit accrued by an employee who had ...
  2. Contingent Beneficiary

    1. A beneficiary specified by an insurance contract holder who ...
  3. Self Invested Personal Pension (SIPP)

    A tax-efficient retirement savings account available in Great ...
  4. Elder Care

    Elder care, sometimes called elderly care, refers to services ...
  5. Gold IRA

    Definition of Gold IRA
  6. Eligible Transfer

    An IRS-allowed movement of assets into or out of an individual ...

You May Also Like

Related Articles
  1. Trading Strategies

    Top 7 Roth IRA Stocks for 2015

  2. Professionals

    Are Longevity Annuities in 401(k)s a ...

  3. Professionals

    Why Retirement Advice Is Better But ...

  4. Professionals

    Coming Soon: Private Equity In 401(k) ...

  5. Professionals

    Ways To Cut 401(k) Expenses

Trading Center