Question

My wife’s father may soon pass at roughly 84 years old. We understand how his IRAs will transfer to her and the requirement that she exhaust those through RMD’s within ten years, regardless of her age. The catch is she is 60, so she has years left in her ability to make IRA contributions.

I was wondering if she could take her RMDs from the inherited IRAs and then contribute (up to her limits) to her own IRAs? The net result would be an offset of the inherited IRAs taxable effect by moving that extra income into her IRAs. Of course, officially, these would be two separate transactions which just happen to offset.

Question

My wife’s father may soon pass at roughly 84 years old. We understand how his IRAs will transfer to her and the requirement that she exhaust those through RMD’s within ten years, regardless of her age. The catch is she is 60, so she has years left in her ability to make IRA contributions.

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