Permalink Submitted by Alan - IRA critic on Wed, 2018-04-11 22:17
Yes, the named beneficiary can request a direct rollover to either an inherited IRA or inherited Roth IRA. Any distribution paid to the beneficiary cannot be rolled over.
Permalink Submitted by Richard Sinton on Mon, 2018-04-16 13:47
Hello I have a theoretical question. If you have an immigrant that comes and works in the USA with a greencard then leaves the USA moves back to their country of origin, lets say this is the UK and then dies. Will the IRA be subject to the non greencard holder inheritance tax of around 40% or will it still be exempt the $5,000.000 inheritance tax rule? Can anybody help me with this?
Permalink Submitted by John Wright on Mon, 2018-04-16 18:07
I believe the US-UK Estate Tax Treaty covers this in article 8 section 5 although my interpretation may be incorrect(5) Where property may be taxed in the United States on the death of a United Kingdom national who was neither domiciled in nor a national of the United States and a claim is made under this paragraph, the tax imposed in the United States shall be limited to the amount of tax which would have been imposed had the decedent become domiciled in the United States immediately before his death, on the property which would in that event have been taxable.
Permalink Submitted by Christopher Richardson on Thu, 2018-04-19 13:45
I have done a trustee to trustee transfer from a 401k to a non spousal beneficiar ira in a brokerage account A)can I now divide part of the account by rollover into an annuity and/or an alternative investment B) if I can divide part of it, will a single distribution from one of the 2 accounts satisfy the rmd so long as it is the sum of the amounts required in each one?
Permalink Submitted by Alan - IRA critic on Thu, 2018-04-19 16:23
You cannot do a 60 day rollover, but you move part or all of the account by direct trustee transfer to a new inherited IRA account. Be aware that you must maintain enough liquidity to meet your annual beneficiary RMD, and yes, you can aggregate the RMD in any combination between the two accounts. Some annuities may restrict your distribution options for inherited accounts, so once you decide how you want to handle your RMDs you should ask the insurance company if there will be any issues or restrictions. For example, not all insurance companies allow life expectancy RMDs if the 401k owner passed prior to the RBD. Your RMD divisor can also be affected if you did not transfer to the inherited IRA before the end of the year following the year the 401k owner passed.
Permalink Submitted by Carolrose Schlesinger, CFP,CLu,CHFC on Wed, 2018-04-11 18:29
Can this be rolled to an IRA…
Permalink Submitted by Alan - IRA critic on Wed, 2018-04-11 22:17
Yes, the named beneficiary can request a direct rollover to either an inherited IRA or inherited Roth IRA. Any distribution paid to the beneficiary cannot be rolled over.
Permalink Submitted by Richard Sinton on Mon, 2018-04-16 13:47
Hello I have a theoretical question. If you have an immigrant that comes and works in the USA with a greencard then leaves the USA moves back to their country of origin, lets say this is the UK and then dies. Will the IRA be subject to the non greencard holder inheritance tax of around 40% or will it still be exempt the $5,000.000 inheritance tax rule? Can anybody help me with this?
Permalink Submitted by John Wright on Mon, 2018-04-16 18:07
I believe the US-UK Estate Tax Treaty covers this in article 8 section 5 although my interpretation may be incorrect(5) Where property may be taxed in the United States on the death of a United Kingdom national who was neither domiciled in nor a national of the United States and a claim is made under this paragraph, the tax imposed in the United States shall be limited to the amount of tax which would have been imposed had the decedent become domiciled in the United States immediately before his death, on the property which would in that event have been taxable.
Permalink Submitted by Christopher Richardson on Thu, 2018-04-19 13:45
I have done a trustee to trustee transfer from a 401k to a non spousal beneficiar ira in a brokerage account A)can I now divide part of the account by rollover into an annuity and/or an alternative investment B) if I can divide part of it, will a single distribution from one of the 2 accounts satisfy the rmd so long as it is the sum of the amounts required in each one?
Permalink Submitted by Alan - IRA critic on Thu, 2018-04-19 16:23
You cannot do a 60 day rollover, but you move part or all of the account by direct trustee transfer to a new inherited IRA account. Be aware that you must maintain enough liquidity to meet your annual beneficiary RMD, and yes, you can aggregate the RMD in any combination between the two accounts. Some annuities may restrict your distribution options for inherited accounts, so once you decide how you want to handle your RMDs you should ask the insurance company if there will be any issues or restrictions. For example, not all insurance companies allow life expectancy RMDs if the 401k owner passed prior to the RBD. Your RMD divisor can also be affected if you did not transfer to the inherited IRA before the end of the year following the year the 401k owner passed.