Beneficial IRA
I have an inherited beneficial non spouse IRA from which I am receiving RMD distributions. This was set up about four years ago. Am I allowed a 60 day window to rollover a portion of this IRA to a new custodian or must I do a direct trustee to trustee transfer only.
Permalink Submitted by Alan - IRA critic on Wed, 2015-11-18 20:14
There are no rollovers allowed for a non spouse inherited IRA. The only way to change custodians is by doing a direct trustee transfer. These should not generate a 1099R and are not reported on your return. If a check is made out to your new IRA custodian for your benefit and given to you to deliver to the new custodian, that is considered a direct transfer. But if a check is made out directly to you, there is no solution to that check becoming taxable. Note that the direct transfer can be done before or after you take the annual RMD.