inherited ira
Daughter inherited father’s ira. Was the named beneficiary. Bank sent her a check without any discussions, options, withholding for income tax, etc, a month and half ago. Since she is still within the 60 day window, can she deposit the full amount into an, inherited ira?
Permalink Submitted by Alan Spross on Fri, 2010-02-19 20:17
Inherited IRA funds cannot be rolled over, and there are no exceptions offered by the IRS, even for custodian error. Are you sure that the beneficiary has absolutely no contact with the bank under which they could allege she requested a distribution? If there was no possible reason for this, she must return the check to the bank with a written demand to rescind the distribution so that she can take distributions when she chooses, including her RMDs. If this is a large amount of money, she might want to get an attorney to make the demand on her behalf.
The 60 day window does not even apply here, since the funds are not rollover elgible to begin with. Eventually, she may choose to move the funds to another custodian, but must do that by a direct trustee transfer. The check cannot be made out to her.