Editor's Note

Under these circumstances, no third party can prevent the surviving spouse, as sole executor and sole trustee, from receiving the proceeds of IRA Z up to the amount of A% of the specified residue of the Trust in satisfaction of the spouse's mandatory share and then rolling over the proceeds int...

Full description

Saved in:
Bibliographic Details
Published in:Journal of deferred compensation 2024-04, Vol.29 (3), p.III-VI
Main Author: McNeil, Bruce J
Format: Article
Language:English
Subjects:
Beneficiaries
Individual retirement accounts
IRA
Names
Tax regulations
Third party
Online Access:Get full text
Tags: Add Tag
No Tags, Be the first to tag this record!
Description
Summary:Under these circumstances, no third party can prevent the surviving spouse, as sole executor and sole trustee, from receiving the proceeds of IRA Z up to the amount of A% of the specified residue of the Trust in satisfaction of the spouse's mandatory share and then rolling over the proceeds into the spouse's own IRA. [...]the taxpayer was effectively the individual for whose benefit IRA Z was maintained. Because the taxpayer was the surviving spouse of the decedent, the inherited IRA rules of section 408(d)(3)(C) did not prevent a rollover. With respect to the first ruling request, the taxpayer was permitted to roll over the IRA Z proceeds that were not in excess of A% of the specified residue of the Trust, received by the taxpayer to an IRA set up and maintained in the taxpayer's name pursuant to section 408(d) (3)(A)(i), provided that the rollover occurred no later than the 60th day from the day the proceeds were paid from IRA Z. With respect to the second ruling request, as provided in the preceding paragraph, the taxpayer was permitted to roll over a distribution from IRA Z to an IRA established and maintained in the taxpayer's name. [...]except in the case of a rollover to a Roth IRA, the taxpayer would not be required to include in the taxpayer's gross income any portion of the IRA Z proceeds that were not in excess of A% of the specified residue of the Trust and timely rolled over to an IRA established and maintained in the taxpayer's name.
ISSN:1083-6276