Executor can complete rollover of deceased taxpayer's IRA.(IRAs)

Kiplinger Tax Letter, The, May, 2007

An executor can complete a rollover of a deceased taxpayer's IRA, the Service says privately. Here, the IRA owner who was over age 701/2 withdrew a portion of his IRA but died before he received the check. IRS says because the executor of his estate put the money in a new IRA in his name within 60 days after the check arrived, it's a valid rollover.

But the surviving spouse doesn't benefit fully from the rollover. Because the IRA owner died, she can't now be named the account beneficiary and thus can't use IRS rules giving spousal heirs special tax treatment.