Rollover IRA instead of BDA-IRA
Client’s mother had a rollover IRA and passed away. We set up a rollover IRA at Fidelity to receive the client’s share and the assets were transferred. We should have set up a BDA-IRA. Soon thereafter realized this mistake and set up a BDA-IRA and instructed Fidelity to transfer the assets into that instead. They are saying they can’t do that, but instead the distribution is now taxable. Any ideas or help?
Permalink Submitted by Al Fry on Thu, 2007-12-13 19:22
Since a non-spouse can never do a rollover, why would Fidelity have allowed it? Sounds like they may have contributed to the error.
Permalink Submitted by Richard Holbrook on Thu, 2007-12-13 19:39
Thanks Al. The other firm wired the money into the Fidelity IRA, and Fidelity is saying that they don’t check the other account in this situation. But maybe they should have….