rollover of traditional IRA proceeds on death of IRA holder to a new IRA in the name of the beneficiary of the IRA
Is it possible for the beneficiary of a traditional IRA who is unrelated to the IRA holder to roll over, on the death of this IRA holder, the proceeds of this IRA to a new IRA in the name of this beneficiary?
Permalink Submitted by Alan - IRA critic on Wed, 2014-09-10 19:52
No. Any non spouse beneficiary must maintain the inherited IRA as the beneficiary, and can never become the actual owner. The inherited IRA can only be moved by a direct trustee transfer to a new custodian if that is desired. Any check made out to the beneficiary becomes irrevocably taxable to the beneficiary. The inherited IRA title must include both the name of the decedent and the name of the beneficiary in no particular order.