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Should I indicate that my IRA is "inherited" if it is a combination of my own IRA and one inherited from my late husband?

I took proceeds from this combined IRA for my RMD.
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3 Replies

Should I indicate that my IRA is "inherited" if it is a combination of my own IRA and one inherited from my late husband?

No - If you had the IRA custodian transfer the inherited IRA to your own IRA then it is now your IRA and no longer inherited.   It would only be inherited if it remained in your spouses name.

**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.**

Should I indicate that my IRA is "inherited" if it is a combination of my own IRA and one inherited from my late husband?

you must have informed the custodian that you wanted to combine.

Otherwise, they are separate. 

 

If they are separate, you can't use one to satisfy the RMD for the other.

Should I indicate that my IRA is "inherited" if it is a combination of my own IRA and one inherited from my late husband?

A spouse-beneficiary is allowed to keep the IRA as a separate "inherited" IRA, or do a rollover into an IRA in their own name.  This can be a new IRA, or it can be rolled over into a previous IRA in their name.

 

Once you do a rollover into your own IRA name, it is all your own IRA, and is not considered an "inherited" IRA any longer.  (Even though you did inherit the money, inherited IRAs are subject to special rules.  If you take the spouse option to roll it over in your name, then it is your money for tax purposes and is no longer considered separately.)

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