Estate beneficiary IRA to the individual it was assigned to through probate?
Have the tax laws changed that will allow for transfer of an Estate beneficiary IRA to the individual it was assigned to through probate? I currently have to keep the Estate open and file an Estate tax return every year showing I received the RMD based on the decedent’s birthdate.
Permalink Submitted by Alan - IRA critic on Mon, 2019-04-22 23:23
An executor has been able to assign an inherited IRA out of the estate to the applicable beneficiary of the estate for many years now, but some smaller IRA custodians may refuse to cooperate. This practice is not addressed in the tax code, but rather has been approved in various IRS letter rulings over the years. If your custodian refuses to cooperate, you may be forced to transfer the inherited IRA to a larger custodian that will cooperate without asking the executor to secure their own letter ruling, which is a waste of time and very expensive.