Your Spouse Passed Away, 3 Things to Do with IRA

Make decisions when you are comfortable

What a traumatic time, mourning the loss of a loved one.  Soon to follow will be the financial decisions make, often creating even more stress. 

It is critical that your options be thoroughly explained to you, seek help from a trusted advisor before making any decisions.

 
You have a few options:

  • You can Rollover the balance of the funds to an IRA without incurring a tax liability. You may continue the tax deferral on future growth until you reach age 70½. At that time you are required to begin taking regular annual withdrawals.
  • Depending on your age, you may want to take the distribution as an income stream based on your life expectancy.
  • Keep the account in deceased spouse’s name, allowing for stretch in the future.

Take your time in making decisions, rarely is there a critical time crunch to get this done.  Year end tax planning would possibly be one of the reasons to move a little quicker, but don’t be pressured into making decisions until YOU are comfortable.

Invest in Balance

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