Can a Wife Withdraw Money From an IRA as a Beneficiary if Her Husband Is a Beneficiary?
An Individual Retirement Account, or IRA, offers the opportunity for the account holder to name beneficiaries. These beneficiaries are the only people who may draw funds from the account. Even though spouses of an IRA account holder have special privileges when the original account owner dies, these privileges don't extend to you when your husband is still alive or has inherited an IRA.
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Significance
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The Employee Retirement Income Security Act restricts retirement account transfers. In general, retirement funds can't be transferred or assigned to another person. This means you can't just raid your husband's inherited retirement account. If the account is in his name, or if he's the beneficiary, you don't have access to the account.
Process
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The IRS allows a spouse to inherit an IRA without paying income tax on the amount inherited. This money is rolled over into his name or into an account he owns. He's the beneficiary of this account and receives the funds as though he were the original account holder. The spouse may contribute money to the account and make withdrawals according to the rules associated with that retirement account type. For retirement accounts that only offer annuity payments for the life of the surviving spouse, the money is only paid to the spouse, not any future spouses if the surviving spouse decides to remarry.
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Disadvantage
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You can't take the money inherited by your husband from a previous marriage. Withdrawals can't be made from any retirement accounts. Even though you're married, this money isn't divided without a qualified domestic relations order. This order is obtained during a divorce or separation when alimony or child support is involved.
Consideration
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Consider saving money on your own or asking your husband when you need money from the account. Even though you may not directly access the retirement plan, your husband may give you money from the plan after it's withdrawn. Money may be deposited into a joint account. From there, you may access funds withdrawn from the retirement plan.
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