9105 / What benefits apply to IRAs that are inherited by a surviving spouse?

A surviving spouse is entitled to roll over IRA funds that are inherited from a deceased spouse into his or her own account, delaying required minimum distributions (and the associated tax liability) until the surviving spouse reaches age 73 (72 in 2020-2022 and 70 ½ prior to 2020).

A non-spousal beneficiary, on the other hand, is not entitled to delay distributions and must typically empty the inherited IRA within a 10-year period under post-SECURE Act law (prior to 2020, a non-spouse beneficiary could typically take distributions over his or her life expectancy (or a five-year period, whichever method was elected)). “Eligible designated beneficiaries” may continue to use the life expectancy or five-year methods post-SECURE Act.

Any minimum distribution that was required to be made to the deceased owner, but had not been made before the owner’s death, must be made to the surviving spouse in the year of death, but in all other respects, required distributions after the owner’s death are determined as if the surviving spouse were the owner.¹