Surviving spouse may roll estate-owned IRA assets into the spouse's own IRA

Plain-English summary

A decedent named the estate, rather than the surviving spouse, as beneficiary of two IRAs. The spouse was the estate's sole executor and sole beneficiary. The IRS ruled that the two accounts could be combined by trustee-to-trustee transfers into one IRA titled for the decedent's estate without causing a distribution or contribution. When the estate distributes that account to the spouse, the spouse will be treated as the payee, and the account will not be an inherited IRA with respect to the spouse. The spouse may roll the distribution into one or more IRAs in the spouse's own name within 60 days, excluding any required minimum distribution. The rollover generally avoids current income inclusion, except for amounts converted to a Roth IRA.

Ruling snapshot

• Question: May a surviving spouse roll IRA assets payable through the decedent's estate into the spouse's own IRA?
• Outcome: Approved, subject to the 60-day rollover and other applicable rules
• Key authorities: IRC §§ 401(a)(9), 408(d), 408A(d)(3); Treas. Reg. § 1.408-8(c)

Full text (IRS public release)

Internal Revenue Service
Department of the Treasury
Washington, DC 20224

Number: 202549002
Release Date: 12/5/2025
Index Number: 408.00-00

Third Party Communication: None
Date of Communication: Not Applicable

Person To Contact:
----------------------, ID No. -----------------

Telephone Number:

Refer Reply To:
CC:EEE:EB:QP4
PLR-105980-25

Date:
September 04, 2025

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Legend

Taxpayer = -----------------
Decedent = -------------------------
IRA X = ------------------------------------------------------------------------------

IRA Y = ------------------------------------------------------------------------------

Custodian = ----------------------------------
Date 1 = ------------------
Date 2 = --------------------------

Dear -------------:

This is in response to a request for a letter ruling under section 408 of the Internal
Revenue Code (Code), submitted on your behalf by your authorized representative on
February 26, 2025, and updated on May 8, 2025, and July 7, 2025.

The following facts and representations have been submitted under penalties of perjury
in support of the rulings requested.

Decedent died testate as a resident of the State of ------------- on Date 1. Decedent was
born on Date 2 and was less than 72 years old at the time of death. Decedent was
survived by his spouse, Taxpayer. Taxpayer is less than 73 years old.

At the time of death, Decedent owned two individual retirement accounts (IRAs), IRA X
and IRA Y (Decedent’s Existing IRAs), maintained by Custodian. In 2022, Decedent
changed the primary beneficiary of Decedent’s Existing IRAs from Taxpayer to
Decedent’s estate. Decedent's Last Will and Testament leaves Decedent's entire estate
solely to Taxpayer.

Decedent’s Last Will and Testament designates Taxpayer as the sole executor and
beneficiary of Decedent’s estate. Decedent's Last Will and Testament was admitted to

PLR-105980-25 2

probate and Taxpayer was appointed to be the sole personal representative of
Decedent's estate with the sole authority to administer such estate.

As the sole executor of Decedent’s estate, Taxpayer intends to transfer the assets from
Decedent’s Existing IRAs to a new IRA (Decedent’s Transferee IRA) by means of
trustee-to-trustee transfers from IRA X and IRA Y to Decedent’s Transferee IRA.
Decedent’s Transferee IRA will be titled in the name of Decedent for the benefit of
Decedent’s estate. Then, as sole executor of Decedent’s estate, Taxpayer will direct
that the distribution from Decedent’s Transferee IRA be paid to Taxpayer and Taxpayer
will roll over the assets that were distributed from Decedent’s Transferee IRA into one or
more IRAs set up and maintained in Taxpayer’s name.

Taxpayer represents that Decedent’s Existing IRAs, Decedent’s Transferee IRA, and
any IRA maintained in Taxpayer’s name will satisfy the requirements of section 408 at
all times.

Requested Rulings

Based on the above facts and representations, you, through your authorized
representative, request the following rulings:

1. The transfer of assets by means of trustee-to-trustee transfers from IRA X and
   IRA Y to Decedent’s Transferee IRA will not result in a distribution from IRA X or
   IRA Y or a contribution to Decedent’s Transferee IRA.

2. The assets of Decedent’s Transferee IRA to be paid to Taxpayer will be treated
   as being paid directly from Decedent’s Transferee IRA to Taxpayer and, as a
   result, Taxpayer will be treated as the payee or distributee of Decedent’s
   Transferee IRA for purposes of section 408(d)(1).

3. Decedent’s Transferee IRA will not be treated as an inherited IRA within the
   meaning of section 408(d) with respect to Taxpayer.

4. Taxpayer is eligible to roll over the proceeds of a distribution from Decedent’s
   Transferee IRA into an IRA set up and maintained in Taxpayer’s own name if the
   rollover of that distribution occurs no later than the 60th day after the date the
   distribution is received by Taxpayer as executor of Decedent’s estate.

5. Except in the case of a rollover to a Roth IRA, Taxpayer will not be required to
   include in gross income for federal income tax purposes for the year in which the
   distribution from Decedent’s Transferee IRA, and subsequent rollover is made,
   any portion of the amounts from Decedent’s Transferee IRA received by
   Decedent’s estate and rolled over to the IRA set up and maintained in Taxpayer’s
   name.

PLR-105980-25 3

Law

Section 408(d)(1) provides that, except as otherwise provided in section 408(d), any
amount paid or distributed out of an IRA shall be included in gross income by the payee
or distributee, as the case may be, in the manner provided under section 72.

Section 408(d)(3) provides that section 408(d)(1) does not apply to a rollover
contribution if such contribution satisfies the requirements of sections 408(d)(3)(A) and
(d)(3)(B).

Section 408(d)(3)(A) provides that section 408(d)(1) does not apply to any amount paid
or distributed out of an IRA to the individual for whose benefit the account is maintained
if: (i) the entire amount received (including money and any other property) is paid into
an IRA for the benefit of such individual not later than the 60th day after the day on
which he receives the payment or distribution; or (ii) the entire amount received
(including money and any other property) is paid into an eligible retirement plan for the
benefit of such individual not later than the 60th day after the date on which the
payment or distribution is received, except that the maximum amount which may be
paid into such plan may not exceed the portion of the amount received which is
includible in gross income (determined without regard to section 408(d)(3)).

Section 408(d)(3)(B) provides that section 408(d)(3) does not apply to any amount
described in section 408(d)(3)(A)(i) received by an individual from an IRA if at any time
during the one-year period ending on the day of such receipt such individual received
any other amount described in section 408(d)(3)(A)(i) from an IRA which was not
includible in his gross income because of the application of section 408(d)(3).

Section 408(d)(3)(C)(i) provides, in pertinent part, that, in the case of an inherited IRA,
section 408(d)(3) shall not apply to any amount received by an individual from such
account (and no amount transferred from such account to another IRA shall be
excluded from gross income by reason of such transfer), and such inherited account
shall not be treated as an IRA for purposes of determining whether any other amount is
a rollover contribution.

Section 408(d)(3)(C)(ii) provides that an IRA shall be treated as inherited if the
individual for whose benefit the account is maintained acquired such account by reason
of the death of another individual, and such individual was not the surviving spouse
of such other individual.

Section 408(d)(3)(D) permits the rollover of a portion of the amount paid or distributed
from an IRA, providing that if the amount paid or distributed out of an IRA would meet
the requirements of subparagraph (A) but for the fact that the entire amount
was not paid into an eligible plan, such amount shall be treated as meeting the
requirements of subparagraph (A) to the extent it is paid into an eligible plan within the
applicable 60-day period.

PLR-105980-25 4

Section 408(d)(3)(E) provides that the rollover provisions of section 408(d) do not apply
to any amount required to be distributed under section 408(a)(6) (regarding required
minimum distributions under section 401(a)(9)).

Section 408A(d)(3) contains a special rule that applies for a rollover to a Roth IRA from
a non-Roth IRA, which provides in part that, notwithstanding section 408(d)(3), there
shall be included in gross income any amount which would be includible were it not part
of a qualified rollover contribution.

Treas. Reg. § 1.408-8(c) provides that the surviving spouse of an individual may elect to
treat the surviving spouse's entire interest as a beneficiary in the individual's IRA (or the
remaining part of that interest if distributions have begun) as the surviving spouse's own
IRA. In order to make this election, the surviving spouse must be the sole beneficiary of
the IRA and have an unlimited right to withdraw amounts from the IRA.

Analysis

Under the facts presented, the assets in Decedent’s Existing IRAs remaining at
Decedent’s death are payable to Decedent’s estate. Under these circumstances,
Taxpayer, as Decedent’s surviving spouse, is not permitted to treat IRA X or IRA Y as
Taxpayer’s own IRA because Decedent’s estate is the beneficiary of IRA X and IRA Y.

Nevertheless, under the facts presented, as the sole executor of Decedent’s estate,
Taxpayer can cause the assets in Decedent’s Existing IRAs (as transferred to
Decedent’s Transferee IRA) to be paid to Decedent’s estate and then to Taxpayer as
Decedent's estate's sole beneficiary. Accordingly, for purposes of section 408(d)(3)(A),
Taxpayer is effectively the individual for whose benefit Decedent’s Existing IRAs are
maintained. Thus, if Taxpayer receives the assets distributed from Decedent’s
Transferee IRA, Taxpayer may elect to roll over the assets (other than any amounts
required to be distributed in accordance with the required minimum distribution rules of
section 401(a)(9)) into one or more IRAs (which could include one or more Roth IRAs)
set up and maintained in Taxpayer's name, provided that all other applicable rules of
section 408(d)(3) are satisfied.

Pursuant to section 408(d)(3)(B), Taxpayer generally may not roll over more than one
IRA distribution to an IRA within a one-year period. In order to avoid this limitation with
respect to a distribution of the assets in IRA X and IRA Y, the Custodian intends to
transfer the assets in IRA X and IRA Y by means of trustee-to-trustee transfers to a
single IRA, Decedent’s Transferee IRA, which would be titled in the same manner as
IRA X and IRA Y. Following these transfers, the assets can be distributed from
Decedent’s Transferee IRA and rolled over into one or more IRAs set up and
maintained in Taxpayer’s name.

PLR-105980-25 5

Rulings

1. The transfer of assets by means of trustee-to-trustee transfers from IRA X and
   IRA Y to Decedent’s Transferee IRA will not result in a distribution from IRA X or
   IRA Y or a contribution to Decedent’s Transferee IRA.

2. The assets of Decedent’s Transferee IRA to be paid to Taxpayer will be treated
   as being paid directly from Decedent’s Transferee IRA to Taxpayer and, as a
   result, Taxpayer will be treated as the payee or distributee of Decedent’s
   Transferee IRA for purposes of section 408(d)(1).

3. Decedent’s Transferee IRA will not be treated as an inherited IRA within the
   meaning of section 408(d) with respect to Taxpayer.

4. Taxpayer is eligible to roll over the proceeds of a distribution from Decedent’s
   Transferee IRA into an IRA set up and maintained in Taxpayer’s own name if the
   rollover of that distribution occurs no later than the 60th day after the date the
   distribution is received by Taxpayer as executor of Decedent’s estate.

5. Except in the case of a rollover to a Roth IRA, Taxpayer will not be required to
   include in gross income for federal income tax purposes for the year in which the
   distribution from Decedent’s Transferee IRA, and subsequent rollover is made,
   any portion of the amounts from Decedent’s Transferee IRA received by
   Decedent’s estate and rolled over to the IRA set up and maintained in Taxpayer’s
   name.

The rulings contained in this letter are based upon information and representations
submitted by Taxpayer, and on Taxpayer’s behalf by Taxpayer’s authorized
representative, and accompanied by a penalty of perjury statement executed by
Taxpayer, as specified in Rev. Proc. 2025-1, 2025-1 I.R.B. 1, section 7.01(16)(b). While
this office has not verified any of the material submitted in support of the request for
rulings, it is subject to verification on examination. The Associate office will revoke or
modify a letter ruling and apply the revocation retroactively if there has been a
misstatement or omission of controlling facts, the facts at the time of the transaction are
materially different from the controlling facts on which the ruling was based, or, in the
case of a transaction involving a continuing action or series of actions, the controlling
facts materially change during the course of the transaction. See Rev. Proc. 2025-1,
section 11.05.

Except as expressly provided above, no opinion is expressed or implied concerning the
federal income tax consequences of any other aspects of any transaction or item of
income described in this letter ruling.

This letter is directed only to the taxpayer requesting it. Section 6110(k)(3) of the Code
provides that it may not be used or cited as precedent.

PLR-105980-25 6

In accordance with the Power of Attorney on file with this office, a copy of this letter is
being sent to your authorized representative.

Sincerely,

/s/ Neil Sandhu
Neil Sandhu
Senior Technician Reviewer
Qualified Plans Branch 1
Office of the Associate Chief Counsel
(Employee Benefits, Exempt Organizations, and
Employment Taxes)

cc: ------------------------
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