Non-spousal IRA beneficiary alternatives
I have a client who passed away and left 50% of his IRA to his daughter.
She would like to continue with an “inherited IRA.”
The problem comes because she wishes to move the money from the present custodian into three different accounts. I am being told that an inherited IRA can only move once and it cannot be divided into multiple accounts.
Is this correct? Any advice based on my client’s wishes?
Permalink Submitted by [email protected] on Tue, 2007-08-21 19:08
Sounds like info coming from current custodian. I can’t see any reason why she could not have three separate accounts, if they are titled the same. They are not rollovers, so there should not be any limitation, other than fees.
Permalink Submitted by Denise Appleby on Tue, 2007-08-21 19:20
I agree with Al.
The key is to make sure the assets VIA trustee-to-trustee transfer.
I would usually ask ‘why three accounts’, considering the multiple fees that could apply, and the clutter from multiple statements, but since you are involved, I am sure all the issues were considered and are probably moot in her case