Can I transfer my deceased husband's IRA fund to my name if at the end of its 5-year term?

Can I transfer my deceased husband's IRA fund to my name if at the end of its 5-year term?

by Patrick D. Runyen, CPA | Jan 10, 2018

I’m a widow with a beneficiary IRA from my deceased husband. I’m at the end of the five-year term. Can I transfer the mutual fund IRA into my name, or do I have to cash out?

More information is needed to fully address your question. Typically, there is an option when inheriting an IRA that it can be paid out over 5 years, which I’m assuming is what you’re referring to. If you elected this option at the time of inheriting the funds, the assets must be fully distributed from the inherited IRA in order to be taxed. If you did not elect this option, then you will have some flexibility on what you can do with the funds.

I recommend you consult a CPA with all of the details of your situation so that your concerns are fully addressed.

For more resources, check out PICPA’s Money & Life Tips, Ask a CPA, or CPA Locator.

Answered by: Patrick D. Runyen, CPA, CFP, is a wealth manager with Independence Advisors LLC in Wayne, Pa.

The responses are based on the limited information provided by the questioner and apply the laws and regulations at the time of posting. Other options could arise as rules and regulations may change over time, including but not limited to the passage of the Tax Cuts and Jobs Act of 2017. They are intended to provide general information, not specific accounting or tax advice; they are not intended or written to be used and cannot be used for the purpose of avoiding or evading taxes or penalties under the IRS code or regulations. Views expressed do not imply an opinion of the PICPA, its officers, directors, employees, or members.
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