Non-spouse Inherited IRA Rollover?
Custodian of deceased client set up inherited IRAs for non-spouse beneficiaries. Beneficiaries want to move IRAs to their own advisor/custodian. Can a check be issued in the name of the beneficiary IRA for him/her to provide to the new custodian within 60 days or does it have to be a trustee to trustee transfer?
Permalink Submitted by Alan Spross on Tue, 2011-06-28 17:38
It has to be a trustee to trustee transfer. However, if a check is made out to the new IRA custodian “FBO John Smith inherited IRA”, it can be hand delivered by the client, as this is still considered a non reportable T to T transfer. See footnote 1 at end of attached for additional safeguards:
http://www.retirementdictionary.com/definitions/trusteetotrusteetransfer