Distributing Inherited IRA
If a non-spouse inherits an IRA and takes a full distribution, can they roll the money back into a properly titled inherited IRA within 60 days of the distribution?
If a non-spouse inherits an IRA and takes a full distribution, can they roll the money back into a properly titled inherited IRA within 60 days of the distribution?
Permalink Submitted by Alan Spross on Tue, 2010-06-22 22:18
Unfortuneatly, no.
This is probably the number one error made with IRAs, and certainly among the most costly. Distributions are simply not eligible for rollover under any circumstances. I don’t know if custodians even know how to correct such errors or have the authority to reinstate the funds assuming that the distribution is 100% custodian administrative error and the beneficiary’s instructions were completely overlooked.
If anyone knows of any letter rulings or IRS Notices under these circumstances, would appreciate the reference, but have not heard of any.