May 1, 2008 12:00 PM

By Micheal J. Jones

Few things in the tax code are clearer than this: A surviving spouse named as the beneficiary of retirement plan death benefits of a deceased spouse can roll those death benefits into her own individual retirement accounts (IRA). But one regulation is generating confusion about what happens when these death benefits first go to a trust or estate of which the surviving spouse is the sole beneficiary. As a result, 45 private letter rulings (PLRs) have been published on this question. So far, the Internal Revenue Service's answer has always been, “Yes, go ahead.” It's high time the Service issue guidance to assure everyone that this is the case.

When a surviving spouse is named as the beneficiary of a qualified plan that the deceased employee-spouse could have rolled over to an IRA during his lifetime, then so, too, can the surviving spouse. The surviving spouse in this situation, says Internal Revenue Code Section 402(c)(9), is treated “in the same manner as if the spouse were the employee.” Likewise, when a surviving spouse is an IRA's named beneficiary, the surviving spouse may effect an IRA rollover.¹

Topics of Interest

Estate Tax	Donor Advised Funds
GSTs	Family Offices
Private Foundations	Life Insurance
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Topics of Interest

Estate Tax	Donor Advised Funds
GSTs	Family Offices
Private Foundations	Life Insurance
2010 Tax Act News	Industry Trends Surveys

E-Newsletter Signup

2011 Trust Glossary

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50 Years Ago This Month

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50 years ago, in May 1962, we featured articles such as: "Future of Canadian Trusteeship" by Arthur H. Mingay", "Training Trust Employees" by Ian M. Marr, "What is a Trust Officer?" by Eric J. Brown, and "Selling Services" by Donald I. Webb.

Conrad Teitell's Guide to Tax Benefits For Charitable Gifts

Click here to view the most up to date guide (September 2011)

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