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Inheriting your spouse’s IRA gives you more flexibility than other beneficiaries. You can move the assets in different ways, but not every option follows the same tax rules. A direct transfer generally avoids immediate tax consequences, while receiving the funds yourself starts a 60-day rollover clock. Missing that deadline can turn an otherwise tax-free transaction into a taxable distribution.
Why the 60-Day Window Exists
A surviving spouse generally has more choices than other IRA beneficiaries. Depending on your circumstances, you may keep the account as an inherited IRA, assume ownership or move eligible assets into another IRA. 1
The 60-day deadline applies only to an indirect rollover. When that happens, the custodian sends the distribution to you, and you generally must deposit the eligible amount into an IRA within 60 days to keep the transaction tax deferred.
A trustee-to-trustee transfer sends the assets directly from one financial institution to another. Because you never receive the distribution, the 60-day deadline does not apply.
Here’s how both rollover options compare:
| Transfer Method | Where the Money Goes | 60-Day Deadline |
|---|---|---|
| Trustee-to-trustee transfer | Directly to the receiving IRA custodian | No |
| Indirect rollover | To you first, then into your IRA | Yes |
A direct trustee-to-trustee transfer also is not subject to the IRA’s one-rollover-per-year limit because it is not considered a rollover.
What Happens If You Miss the 60-Day Deadline
As an example, let’s say that you receive $300,000 from your spouse’s pretax traditional IRA and want to move the full balance into your own account. For simplicity, we will treat the entire sum as pretax, exclude required minimum withdrawals and assume no federal withholding election. The outcome will depend on timing:
| Action | Transferred | Tax Consequence |
|---|---|---|
| Deposit within 60 days | $300,000 | $0 |
| Deposit after 60 days without relief | $0 qualifying as timely | $300,000 |
| Deposit only $250,000 within 60 days | $250,000 | $50,000 |
Funds not transferred by the cutoff lose tax-free treatment. The taxable portion gets included in your year of receipt, even if day 60 falls in the next tax period. A late transfer without relief is typically treated as a regular contribution rather than a rollover and could create an excess contribution issue.
The unexpected tax cost depends on your bracket and other sources of revenue. A $300,000 sum could push portions into higher federal tiers and affect state levies or other income-based expenses.
If the initial withdrawal qualifies as a beneficiary distribution from an inherited account, the death exception generally prevents the 10% early-withdrawal penalty, even before age 59 ½. This means that the regular tax still applies. If you later treat the account as your own and withdraw before 59 ½, penalties may apply unless another exception exists.
The IRS may grant relief under limited circumstances through automatic waiver, private letter ruling, or self-certification when you missed the deadline for agency-listed reasons. Self-certified transfers must complete as soon as practical after resolution, ordinarily within 30 days, and remain subject to future review.
A financial advisor can help you select a transfer option and reduce the risk of mistakes that may create unexpected taxes, and they can help you make sure you don’t miss an important deadline.
The Other Deadline Surviving Spouses Can Miss
As a surviving spouse, you have a separate election deadline from the 60-day rollover window. You can treat the inherited IRA as your own or keep it titled as inherited. This election must happen by your first required minimum distribution (RMDs) date or by the end of the calendar year following your spouse’s death, whichever comes later. Miss it, and the choice closes.
Inherited IRAs require distributions based on your life expectancy. If you treat the account as yours, you can delay withdrawals until you need the money or reach age 73 for RMDs. Missing the election locks you into the inherited structure with mandatory payouts.
The 60-day rollover deadline and spousal election deadline are separate. You could meet one and miss the other. A financial advisor can help you understand both timelines and choose an approach.
A financial advisor can help you make the right decisions so that your inherited funds are as protected as they can be.
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Article Sources
All articles are reviewed and updated by SmartAsset’s fact-checkers for accuracy. Visit our Editorial Policy for more details on our overall journalistic standards.
- “Publication 590-A (2025), Contributions to Individual Retirement Arrangements (IRAs).” What If You Inherit an IRA?, Apr. 30, 2026, https://www.irs.gov/publications/p590a#en_US_2025_publink100015272.