60 Rollover for deceased individual

Submitted by Anthony Malizia on Wed, 2016-06-22 14:09

If a person dies after taking a large distribution from an IRA, could the executor of the estate roll it over into the deceased person’s IRA within 60 days? Or are there other actions the executor could take on the distribution, for example re characterize as a Roth conversion.



Submitted by Bruce Steiner on Wed, 2016-06-22 15:58

  • Several private letter rulings permit an executor of an estate to complete a rollover.  PLRs 201514020 (which I obtained), 201334046, 200502050, 200420037, 200415011, 
  • Bruce Steiner, attorney, NYC, also admitted in NJ and FL


Submitted by Anthony Malizia on Wed, 2016-06-22 22:50

Thank you for you response and information. Would the intent of the distrubiton matter? The decedent took the IRA distribution to fund a trust for a friend who needed assets to qualify for a retirement community. The money from the distrbution went to the trust and some to the retirement faciltity. Shortly after her passing the friend of the decendent unexpectedly died and the retirement facility is giving back the funds. The custodian, LPL Financial, said they would accept the funds as a 60 day rollover from the executor fo the estate.



Submitted by Alan - IRA critic on Wed, 2016-06-22 23:38

  • Intent should be immaterial, so as long as the IRA custodian will accept the rollover contribution, the only concern is getting it done within 60 days. Should a PLR be needed to extend the 60 days, then intent would become a factor. Of course, the executor should also be aware of issues should the IRA beneficiary differ from the estate beneficiaries.
  • The one rollover rule should apply here, so hopefully the decedent did not roll over a prior distribution taken within the 12 month period before this distribution.


Submitted by Anthony Malizia on Thu, 2016-06-23 15:22

Got it, we will move quickly on this. Thank you for sharing your expertise!



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