How to Cash in a Dead Spouse's IRA Account
- 1). Call the IRA custodian. Confirm that you are the rightful beneficiary. Most states require a spouse to be the beneficiary unless a waiver is signed. Double check that you haven't forgotten about a waiver signed years earlier.
- 2). Request a beneficiary benefits distribution form. Explain that you are not interested in maintaining the IRA and want to liquidate the entire value.
- 3). Fill the benefits distribution form out completely. In the owner's section, identify the name, date of birth and Social Security number of your deceased spouse. Complete the beneficiary information section with your name, Social Security number and date of birth and update the address information.
- 4). Check the box that states you want a complete (100 percent) liquidation and distribution. If no box exists, write "100 percent" in the line asking for the "Distribution Amount."
- 5). Check any tax withholding that you want kept from the distribution. The entire IRA is counted in the estate's transfer value and the amount distributed generates IRS Form 1099 that adds the amount to your annual income. If you elect no withholding and if you owe taxes on the withdrawal, it will be paid at the time that you file your tax returns.
- 6). Sign and submit the form. Include a copy of the IRA statement and an original death certificate. It takes approximately one week to get the check once all required paperwork is received.
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