do beneficiaries have to move ira funds to an inherited ira prior to a lump sum payout?
A sole beneficiary is inheriting an IRA from his father that is 100% in cash. Does he need to open up an inherited IRA and move the funds to that before he can do a lump sum distribution or can he do it directly from his father’s account?
Permalink Submitted by Alan - IRA critic on Tue, 2023-09-12 19:49
There might a few IRA custodians that would make the distribution directly from father’s account, but the vast majority will want to first transfer the funds to an inherited IRA of the beneficiary under their SSN. This eliminates having distributions made under a single IRA to multiple payees each having their own SSN.