Inherited IRA and 60 day rollover
Is my understanding correct.
A non-spouse takes a distribution from an inherited IRA, which is in addition to the RMD, and wants to roll back the funds within 60 days to avoid taxation.
This is not permitted under the IRC.
Thank you.
Permalink Submitted by Alan - IRA critic on Tue, 2015-09-22 20:37
You are correct. A distribution to a non spouse from an inherited IRA is never eligible for rollover. Perhaps the person can use this money to subsidize increased pre tax contributions to their owned retirement accounts and these deductions would offset the taxable inherited IRA distribution. Essentially funds would be transferred from an inherited account to an owned account without doing a rollover.