Taxpayer's husband died 5 years ago at a work related accident. 2007 taxpayer rolls deceased husband's retirement annuity to IRA in her name. She then withdrew $35000 from the IRA in 2007. Does this retain the "exception to 10% penalty" as a distribution to a beneficiary on or after death?
10% penalty ?
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10% Penalty
Taxpayer's husband died 5 years ago at a work related accident. 2007 taxpayer rolls deceased husband's retirement annuity to IRA in her name. She then withdrew $35000 from the IRA in 2007. Does this retain the "exception to 10% penalty" as a distribution to a beneficiary on or after death?Jiggers, EA -
No. The code says:"Distribution to a beneficiary (or the estate) on or after the death of the participant. Does not apply to modified endowment contracts.Comment
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