IRA Transfer on Death Beneficiary
Does a receive beneficiary son of his now deceased mother’s TOD IRA receive them into his IRA? Son is being told he must accept asset which is an annuity in the form of annuity payments (annuitization) rather than lump sum under auspices of tax avoidance.
Thanks in advance-
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Permalink Submitted by Alan - IRA critic on Mon, 2017-12-04 16:55
Has this account already been annuitized? If not, the son would be allowed to do a direct transfer of the annuity to another IRA custodian under IRS rules, but the insurance company contract might not allow that. Son might want to review a copy of the contract to be sure what he is being told is correct. Note that if son receives annuity payments for life, that will satisfy his annual beneficiary RMD.