Which option is NOT available to a spouse inheriting her deceased husband's IRA?

The option that is not available to a spouse inheriting her deceased husband's IRA is to transfer the IRA to her own name and make contributions. When an individual inherits an IRA, there are specific rules that dictate how that account can be managed.

A surviving spouse has several options when inheriting an IRA. However, if she opts to treat the IRA as her own by transferring it into her name, she can no longer designate it as an inherited IRA, which means she cannot contribute to it. This marks a significant difference between a regular IRA and an inherited IRA, as contributions are not allowed to an inherited IRA.

The other options available to the spouse include treating the IRA as an inherited IRA, which allows for the continuation of required minimum distributions based on the deceased's life expectancy or her own. The 5-year rule allows the spouse to withdraw all funds within five years without penalty if no distributions are taken, which is applicable in some situations. Lastly, retaining the IRA until reaching retirement age is allowed, as the spouse can choose to keep the inherited IRA for as long as needed, with required distributions based on the applicable rules.

Understanding these options helps clarify the limitations on contributions to an inherited IRA, which makes the first choice the correct designation.