Transferring inherited Traditional IRA from Bank to Brokerage

Transferring inherited Traditional IRA from Bank to Brokerage My understanding is that when inheriting a Traditional IRA(Bank CD) as a Non spouse Beneficiary you first should get the account you’re inheriting retitled to a Beneficiary IRA at the current institution and then if you want to transfer it to another custodian you can do that in the future because the titles should match. Is that correct? Also, is there generally any issue in a direct transfer from one custodian to another with an Inherited bank CD Traditional IRA (once it is retitled to an inherited IRA) to a brokerage Traditional inherited IRA? On another note, when inheriting a Traditional IRA as a Non spouse Beneficiary from a brokerage custodian, if you want to keep it at that custodian can you transfer it in kind—keeping exactly the same allocation of funds as they are if you choose to? Thanks so much. IRAs pose a lot of considerations!



Yes, the inherited IRA CD must be retitled before the bank can accept directions from the beneficiary. A direct transfer to a new custodian can then be completed, and of course funds cannot be moved via 60 day rollover for an inherited IRA. If the custodian is a brokerage, an in kind transfer can usually be done which will avoid selling and re purchase of investments.



Thank you very much!



Add new comment

Log in or register to post comments