Just to add: Since you used the option to treat it as your own and had it transferred to your IRA, it is now *your* IRA and not an inherited IRA. Only if you kept it is a separate account in your wife's name with you as beneficiary would it remain an inherited IRA. For future distributions when asked if the distribution is from an inherited IRA, the answer is no.
**Disclaimer: This post is for discussion purposes only and is NOT tax advice. The author takes no responsibility for the accuracy of any information in this post.**
