Options When Inheriting an IRA From a Spouse

When a spouse inherits an IRA, and they’re under age 70 1/2, they have several options in front of them (depending on their unique financial situation – every person is different, and these examples are generalized):

  1. Treat the IRA as their own.
  2. Transfer the assets to an Inherited IRA.
  3. Transfer the assets to an Inherited IRA and distribute the assets using the 5-year rule.
  4. Take a lump sum.

If the spouse who is inheriting an IRA is over age 70 1/2, their options are somewhat similar. However, understanding the “why” behind the action you choose to take with your inheritance and to know all of your options – especially during an emotional and high-stress time of your life. You can read more about IRA inheritance in Tim’s latest article from the Columbia Daily Tribune.

As a financial planner specializing in comprehensive financial planning, Tim enjoys helping clients in Columbia, MO with managing their taxes, financial risks and other financial issues.

If you would like to learn more about this and other personal financial planning topics serviced by Clarity Financial please contact us at 573-447-7007. Clarity Financial, LLC is a fee-only financial advisory firm in Columbia, MO. Appointments are welcome and initial consultations are free. 

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This article is the property of Clarity Financial LLC.