Inherited IRA after bene is 59.5
Can my client, turning 59 next month, move the assets within her Inherited IRA (from her deceased husband) to her own IRA? I’m looking to avoid RMDs obviously, or at least provide her an increased measure of flexibility each year.
If so, shall we wait until she’s beyond 59.5? Further, how would this be coded? (Rollover or transfer?) Any idea where I might find a good resource on this topic?
Thanks for any assistance!
Permalink Submitted by Alan - IRA critic on Fri, 2014-01-24 01:33
Client can roll the inherted IRA over to her own IRA anytime, or even roll over a partial distribution from the inherited IRA. If the simplicity of a single rollover is desired, she should wait until 59.5 is attained to be sure any needed distribution before that is not penalized. The change of title to an owned IRA can be done by 60 day rollover or direct trustee transfer. With respect to the RMD implications of when to do the rollover, assuming she is sole beneficiary of his IRA, RMDs begin in the year the deceased husband would have reached 70.5. Also, if her husband would already have reached 70.5 and she does not take an RMD required as beneficiary, the inherited IRA automatically defaults to ownership status.