Since your original intent was to have the money remain in retirement accounts, I'll assume that you want to get some of these funds back into IRAs.
You have two options:
- Roll over the traditional IRA distribution to another traditional IRA and keep the Roth IRA distribution, resulting in no taxable income but losing the potential for future tax-free growth in the Roth IRA.
- Roll over your Roth IRA distribution convert your traditional IRA distribution to Roth, with the Roth conversion being taxable but future growth in the Roth IRA will be tax-free.
Your wife has two options:
- Roll over the traditional IRA distribution to another traditional IRA and keep both of the Roth IRA distributions, resulting in no taxable income but losing the potential for future tax-free growth in the Roth IRAs.
- Convert the traditional IRA distribution to Roth, roll over one of the Roth IRA distributions and keep the other, with the Roth conversion being taxable but future growth in the Roth IRA will be tax-free.
(You said these were traditional and Roth IRAs, so I assume that none of these was actually an account in a qualified retirement plan like a 401(k), otherwise the options are different.)
