Stretch IRA Annuity
If a beneficiary has inherited 2 IRA’s, one a brokerage a/c, another a fixed index annuity, does he have to set up 2 inherited IRA’s or can he rollover the brokerage a/c to the annuity and therefore just have 1 inherited IRA which would be an annuity ?
Permalink Submitted by Alan Spross on Thu, 2008-07-24 19:37
He will probably have to keep these inherited IRAs separate unless the insurance company will accept a direct transfer of cash from the brokerage IRA to be added to the current annuity investment. This should be discussed with the insurance company to determine what restrictions will exist if the other account is transferred in.
Of course, assuming a non spouse beneficiary, any change must be done by direct trustee transfer, as the funds are not eligible for rollover. Also, note that if these are inherited from the same decedent, the RMDs can be aggregated, ie. calculated separately but taken from only one of the accounts.
Permalink Submitted by Dennis Van Dusen on Thu, 2008-07-24 19:44
Thank You.