The Room 208 Blog

If a person who has an Ira and has put someone on their Ira as a beneficiary but that beneficiary is not a spouse, the Ira contributions can still be rolled over to the non spouse beneficiary in the case of death from the Ira holder. When they are not a spouse, the Ira would become an inherited Ira and the beneficiary would then be able to make the decision on what they would want to do with the Ira. They could either stay the beneficiary and wait on the payout or they could roll in over into their own Ira, or they could put themselves as the main holder of the Ira if they don’t have their own.