Combining Inherited IRA’s
I inherited two IRA’s that were left to the IRA owner’s estate. No designated beneficiary, just the estate of which I am the heir. I am going to have to take the money out of each in the five year period.
First question: Can I combine the IRA’s both titled “The Estate of Deceased, Inherited IRA, xxx as Executor” into one IRA through trustee transfers?
Second: If I can combine them I want to put them in a five year SPIA. Is this ok b/c to me this will take care of the five year pay out.
Thanks
Permalink Submitted by Alan Spross on Tue, 2008-05-13 22:15
1) The IRA accounts can be combined as they are both inherited from the same decedent and both subject to the 5 year rule, but only by direct trustee transfers. The mechanics of doing this differ depending on whether the estate is still open and managed by the executor of if the estate has been terminated and the IRA accounts assigned to you as beneficiary.
2) No reason this cannot be done if the IRAs are assigned per above, but cannot see any advantage to it unless you would be getting a higher yield. If the estate is still the beneficiary, it may present problems with issuing the SPIA, but you would have to take that issue up with the insurer.