inherited IRA
I have a client who had an inherited IRA with another firm since 2019. She did not take any distributions and received a check closing the account from the firm with 20% withheld. The check was payable to her and she deposited into her checking account. She wants to put it into an inherited IRA and start taking distributions. Is she able to do a rollover under the 60 day window or does that not apply with inherited IRA’s.
Permalink Submitted by Alan - IRA critic on Wed, 2024-11-06 22:30
A non spouse IRA beneficiary is not allowed to rollover a distribution. They could have transferred the funds directly to another inherited IRA as a transfer is not a distribution, but this distribution will have to be reported as taxable income.