IRA benificary is a minor and has missed the deadline for a rollover

What options are available to a minor who has missed the deadline on transferring an inherited IRA. I have been given a variety of responses by the existing custodian. My client would like to move this to another custodian.



A non spouse beneficiary cannot do a rollover, but there is no deadline for the responsible person for this minor to transfer the inherited IRA to another custodian. Where did the concept of a deadline come from?  Often, IRA custodians want to make lump sum distributions, but they cannot force out either a lump sum distribution or hold the account hostage and bar transfers to another custodian. Be sure the current IRA custodian does not issue a distribution check, because such a distribution can never be rolled over and would be fully taxable. If the minor misses a couple RMDs due to complications with the responsible party etc, the stretch can be restored by making up the late RMDs, which are likely to be a very small portion of the account balance.

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