Non-spouse Beneficiary IRA
A client inherited an IRA from her mom. Her mom had not started taking distributions. Can the beneficiary transfer part of her IRA to another custodian? If so, can the beneficiary apply the 5 year rule to one IRA and the lifetime rule to the part of the IRA that was transferred to the new custodian? Thank you for you help.
Permalink Submitted by Al Fry on Mon, 2008-04-14 22:12
If an IRA is set up in separate accounts by 12.31 in the year following death, different didtribution rules can apply to each account. This is normally done when the IRA has multiple benes. I am not sure why it could not be done for the same bene. Alan or Denise may have a more firm response.