401K rollover to Non Spouse inherited IRA

Submitted by David Castelli on Thu, 2016-04-28 18:57

Am I correct and this is now an accepted form of an IRA Rollover?

I realize it changes the MRD amounts going forward



Submitted by David Castelli on Thu, 2016-04-28 19:04

i spoke to soon. looks like an inherited IRA can not accept any contributions or rollovers.

Submitted by Alan - IRA critic on Thu, 2016-04-28 20:42

The inherited IRA can accept a direct rollover only in the following circumstances:

  1. The 401k is also inherited from the same decedent.
  2. The RMD divisor is identical for the inherited IRA and for the inherited 401k. There are some scenarios where they may differ, so if there is any doubt then the inherited 401k should be directly rolled into a new inherited IRA.
  3. The RMD for the inherited 401k for the direct rollover year has been distributed and therefore is not included in the direct rollover.

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