Inherited IRA bank CDs
I inherited a bank IRA CD from my father who passed away in Sept 2007. It was properly transferred to me and titled correctly. The CD was maturing on March 6, 2008 and I wanted to move the money to another bank. The first bank gave me a check made out to the way the inherited IRA CD was titled – my name and my father’s name. I took that check to the second bank and they opened an inherited IRA CD. But I never endorsed the check. Is this a rollover and if so, can I try to have the banks void the whole transaction since I never endorsed the check?
Permalink Submitted by Alan Spross on Mon, 2008-03-17 21:35
The inherited IRA custodian should have been named as payee, but since they accepted the check without your endorsement, you likely have a bona fide transfer, and NOT a rollover. And that’s critical since these funds are not rollover eligible, and can only move to a new custodian by direct trustee transfer in order to avoid a taxable distribution.