The funds cannot be rolled over to an owned IRA, but can be directly transferred to either an inherited TIRA or an inherited Roth IRA. Mother’s RMDs must begin in the year following daughter’s death and should not be overlooked in order to avoid problems and costs in avoiding the 5 year rule since daughter passed prior to her required beginning date. Since Mother will be 76 in the first year of RMDs, the IRA will last 12 or 13 years. The first Table 1 divisor is reduced by 1.0 each successive year.

Remember that any distribution check made out to Mother cannot be rolled over and will be taxable, so would warn her about that.

If daughter had any unrecovered basis in her IRA, Mother would inherit it and distributions would be less than 100% taxable.

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