IRA transfer ” Like Kind Exchange”
I am transferring a percentage of an I.R.A. because the client wants this account to name her one daughter beneficiary to equalize the estate with her other daughter. I am told since the beneficiaries are not the same it’s not a ” Like Kind Exchange” and can’t be done. Is this correct?
I know I can change the beneficiaries after the transfer, just doesn’t seem right.
Frank Dogger
Permalink Submitted by Alan - IRA critic on Sat, 2024-12-21 10:41
Is this an IRA annuity? It’s likely that only an insurance company would use the term “like kind exchange” which is a 1035 exchange with respect to an IRA. IRA transfers are not 1035 exchanges and 1035 rules do not apply to them.
The client should be able to make this transfer to an IRA with only the one daughter listed as beneficiary on the new IRA, while I assume both of them are beneficiaries on the existing IRA or IRA annuity.
Permalink Submitted by Frank Dogger on Sun, 2024-12-22 09:26
This is an I.R.A. and yes, both daughters are listed on the current I.R.A.
Thank you – Frank