Nothing Is Certain Except Death, Taxes… and Beneficiary Mistakes?

It’s an uncomfortable reality, but if you’re married, there will come a time when either you or your spouse will be faced with life’s most difficult transition — and the financial decisions that come with it. Unfortunately, mishandling inherited IRAs is a very common and costly mistake some surviving spouses make.

With the IRS introducing critical updates to Required Minimum Distribution (RMD) rules in 2024, the implications for 2025 and beyond are even more significant. Now is the time to ensure you’re fully informed and prepared.

Why Spousal IRA Beneficiary Rules Matter More Than Ever

When it comes to inheriting an IRA from a deceased spouse, the rules are different — and often more flexible — than for other beneficiaries. But that flexibility comes with complexity.

Factors like:

• Age
• Income
• Timing
• Tax strategy
• New IRS regulations

…can all impact which option is best for your situation.

Making the wrong choice can lead to unintended taxes, reduced income in retirement, and long-term financial headaches.

Download: Avoiding Spousal Beneficiary Mistakes in 5 Easy Steps

To help you navigate the new rules and avoid common pitfalls, we’ve created a free resource:
“Avoiding Spousal Beneficiary Mistakes in 5 Easy Steps.”

👉 [Download the guide now]

This step-by-step guide walks you through key decision points and gives you a clearer path forward.

Need Help Planning for Your Spouse’s Future Income Needs?

We’re here to help you think ahead. Whether you have questions about inherited IRAs, spousal rollovers, or want to build a plan that supports your loved one well into retirement, we’d love to talk.

📞 Call us at 517-435-4040 to schedule a time to chat.

FAQs: Inherited IRA Rules & Spousal Beneficiary Mistakes in 2025

Q: What are the IRS rules for inheriting an IRA as a spouse in 2025?
A: As of the latest IRS updates, surviving spouses have multiple options when inheriting an IRA in 2025: they can roll the IRA into their own, remain a beneficiary, or take distributions as an inherited IRA. Choosing the best option depends on age, income needs, and required minimum distribution (RMD) rules.

Source: IRS Publication 590-B

Q: What is a spousal rollover IRA, and when should I use it?
A: A spousal rollover IRA allows a surviving spouse to move inherited IRA funds into their own IRA. It can be beneficial if the surviving spouse is over age 59½ and wants to delay RMDs until age 73. However, it may not be ideal if the spouse is younger and needs access to the funds sooner.

Source: IRS FAQs – IRAs

Q: What are common mistakes when inheriting an IRA from a spouse?
A: Common mistakes include taking distributions too early (or too late), missing RMD deadlines, choosing the wrong type of account transfer, and misunderstanding tax implications. These errors can result in penalties or unnecessary taxes.

Source: FINRA – Inherited IRAs

Q: How did the IRS RMD changes in 2024 affect spousal IRA inheritance in 2025?
A: The 2024 IRS updates clarified RMD start dates and distribution timelines, especially for non-spouse beneficiaries. While spouses have more flexibility, it’s still important to understand how these changes impact planning strategies for 2025.

Source: Federal Register – Final RMD Rules

Q: Can I delay taking RMDs if I inherit an IRA from my spouse?
A: Yes, in many cases. If you roll the IRA into your own, you can delay RMDs until you turn 73. If you stay as a beneficiary, different rules apply depending on your age and whether your spouse had already started RMDs.

Source: IRS RMD Chart