Combining Inherited IRAs
Larry is the 50% beneficiary of his father’s 403b and IRA. His brother is the other 50% beneficiary of each. Larry’s father died in 2025.
Once Larry receives an Inherited IRA from both the 403(b) and the IRA, can Larry combine these Inherited IRAs into a single IRA since both accounts were owned by the same person and had identical beneficiaries?
Permalink Submitted by Alan - IRA critic on Mon, 2025-02-24 10:54
Yes, they can be combined because they were inherited from the same original owner and the RMD treatment is the same. If the inherited IRA separate accounts were established first, the direct rollover from the inherited 403b could have been sent to the already existing inherited IRA.
Since the owner’s 2025 RMD (if applicable) might not have been completed before passing, the 403b should have distributed the 2025 RMD before rolling over the balance to an inherited IRA. The inherited IRA 2025 RMD (if any) for the year of death should also be completed by the beneficiaries in any combination between the two.