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davec343
New Member

I withdrew money from my IRA and rolled it over to my spouse's IRA,do I pay Federal and State taxes on the amount? I am over 60 years old.

 
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I withdrew money from my IRA and rolled it over to my spouse's IRA,do I pay Federal and State taxes on the amount? I am over 60 years old.

The answer is "Yes". The problem is that you are not eligible for a tax-free rollover from one spouse's IRA to another except under two conditions:

1. You died and your assets are being transferred to your spouse. or

2. You are getting divorced, and the court ordered the transfer.

Does either case apply?

View solution in original post

3 Replies

I withdrew money from my IRA and rolled it over to my spouse's IRA,do I pay Federal and State taxes on the amount? I am over 60 years old.

The answer is "Yes". The problem is that you are not eligible for a tax-free rollover from one spouse's IRA to another except under two conditions:

1. You died and your assets are being transferred to your spouse. or

2. You are getting divorced, and the court ordered the transfer.

Does either case apply?

dmertz
Level 15

I withdrew money from my IRA and rolled it over to my spouse's IRA,do I pay Federal and State taxes on the amount? I am over 60 years old.

Regarding #2, no rollover is permitted.  An IRA can be transferred incident to divorce only by nonreportable trustee-to-trustee transfer or by retitling an existing account, neither of which is a distribution and rollover.

I withdrew money from my IRA and rolled it over to my spouse's IRA,do I pay Federal and State taxes on the amount? I am over 60 years old.

Regarding the original question: You cannot take money from one spouses IRA and put (roll) it into the other spouses IRA, that is not permitted, and would be a new contribution to the spouses IRA.   If the amount was more than the allowed $6,500 or exceeded the amount of earned compensation on the spouses separate tax return or a joint return (whichever is less), it would be an excess contribution subject to penalty and must be removed.
**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.**
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