Combining Inherited IRAs
My client is inheriting three IRAs from his uncle. Registrations are identical. Can we combine them into one inherited IRA?
My client is inheriting three IRAs from his uncle. Registrations are identical. Can we combine them into one inherited IRA?
Permalink Submitted by Alan - IRA critic on Mon, 2015-02-23 19:41
It depends. They can be combined if the RMD divisors are the same for each inherited IRA. The divisors would NOT be the same if any of these IRAs were inherited first by the uncle and others were not, or if one or more of these IRAs had multiple beneficiaries and separate accounts were not created by the deadline for an IRA that included an older beneficiary than the client. If inherited IRAs with different RMD divisors were combined, the entire IRA would be subject to the divisor reflecting the shortest life expectancy.