Wife Inherits IRA

[Guest]

Husband 60 years old dies leaves $300K IRA annuity to wife age 59. She does not need the money. She wants it out of current company and invested with Allianz.
If I do a spousal continuation there would be surrender charges.
Can't do a 1035 because it's not like to like, different owners.

Can she take the money deposit it into her account and them put it will Allianz and be considered her own IRA. I keep getting different answers.

Please help

 

[SWM]

Husband 60 years old dies leaves $300K IRA annuity to wife age 59. She does not need the money. She wants it out of current company and invested with Allianz.
If I do a spousal continuation there would be surrender charges.
Can't do a 1035 because it's not like to like, different owners.

Can she take the money deposit it into her account and them put it will Allianz and be considered her own IRA. I keep getting different answers.

Please help

First, she needs to inherit the IRA, which means submitting proper claim forms to the current custodian. Upon completion of that, she can transfer the IRA as a Beneficiary IRA. This does depend upon the current custodian and existing surrender. IRS waives 10% penalty for under 59 1/2 on inherited IRAs.

This is not a 1035 as it is qualified funds which means you can also do a partial. I would check if there is an existing MVA as well.

 

[jacobtn]

You can do 1035 after name change from beneficiary form is processed

 

[Tahoe Ray]

Husband 60 years old dies leaves $300K IRA annuity to wife age 59. She does not need the money. She wants it out of current company and invested with Allianz.
If I do a spousal continuation there would be surrender charges.
Can't do a 1035 because it's not like to like, different owners.

Can she take the money deposit it into her account and them put it will Allianz and be considered her own IRA. I keep getting different answers.

Please help

There is no 1035 issue here. It is qualified money and 1035 applies to non-qual only.

She basically has four options:

1) Spousal continuation at the exisiting carrier.
2) Distribute to the wife under any death claim options (not preferred as you said that she doesn't need the money.)
3) Set up as a bene IRA and begin required distributions at the current company or with a new company. (Probably not good since she doesn't need the money)
4) She can do a spousal IRA rollover to another company and retitle the assets in her own name. This would delay required distributions for 11 years but still gives her the option to take immediate distributions (as long as she's 59 1/2)

I hope that this helps.

 

[BeeSelective]

So she calls you and says I want you to transfer my IRA to Allianz?

Strange call! You did try to talk her out of Allianz didn't, you. No one has higher and longer surrender charges than Allianz.