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    #1

    Rollover

    Taxpayer passed a few weeks ago. He was 94 years old. The surviving spouse is 95. Beneficiaries on the account are his spouse 50% and daughter 50%. Their financial advisor says that the funds for the spouse cannot be rolled over because she is too old. I have never heard that before. He also said that the spouse can disclaimed the inheritance thus allowing the daughter to receive 100%. The daughter can then roll it over to an annuity and continue taking disbursements. Doesn't make any sense to me. I think this advisor is just trying to sell annuities.
    Any advice
    Thanks
    Everybody should pay his income tax with a smile. I tried it, but they wanted cash
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    #2
    You didn't say what type of "account" this is, but at first glance and assuming this is a retirement account, I think you are correct.

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      #3
      Sorry Tax Guy, it's a retirement Account.
      Everybody should pay his income tax with a smile. I tried it, but they wanted cash

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        #4
        The RMD tables go up to age 114, so I'm pretty sure an IRA rollover to her own IRA (or using an inherited IRA) would be available for mom.
        I know of no insurance company that will sell a deferred annuity, funding an IRA, to a 95 year old person.
        Lots of them, though, will sell such a product to a younger person.
        The financial "advisor" probably is just looking to sell an annuity (for pretty good compensation) to hold the IRA's beneficial proceeds.
        This is probably why he is suggesting to disclaim, but having mom disclaim her portion sounds a little out of bounds to me.
        Also, the disclaim could possibly count as a divestment of assets under the medicaid lookback period, should she need to apply for it.
        Mom has some options. She may want to check with another financial "advisor" on this issue.

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