Question

Rick recently died and left behind an individual IRA account in his name. His widow was forwarded the balance of the IRA. The transfer of Rick's IRA account balance to his surviving spouse qualifies for

A. The marital deduction.
B. Death benefits.
C. Section 1035 exchange.
D. Capital gains taxation.

Answer 1

The transfer of Rick's IRA account balance to his surviving spouse qualifies for the marital deduction.

Step-by-step explanation:

The transfer of Rick's IRA account balance to his surviving spouse qualifies for the <strong>marital deduction</strong>. The marital deduction allows the surviving spouse to inherit the IRA account balance without paying any taxes on it at the time of transfer. This deduction applies specifically to transfers between spouses upon the death of one spouse.