30 Day IRA once-every-12 month rollover rule.
Does the 30 days once-every-12 months rule apply to inherited IRA?
Patrick inherited an IRA account. Can he take a distribution from the inherited IRA (while it is still in the original decedent IRA owner’s name), then redeposit into an inherited IRA account within 30 days to escape taxation on the distribution?
Permalink Submitted by Al Fry on Tue, 2008-09-23 21:04
No. It is a 60-day rollover (not 30 days). A non-spouse bene can NEVER do a rollover. The only exception is a DIRECT rollover from a QRP.
Permalink Submitted by Alan Spross on Tue, 2008-09-23 22:10
“While in the original decedent’s name?” – You probably meant after the account was re titled as an inherited IRA. An IRA custodian would not permit a distribution to someone not properly registered as an owner or beneficiary.
Once re titled properly, the only way to move it is by direct transfer. There is no “fix” once beneficiary receives a check made out to the beneficiary as this becomes a taxable distribution with no rollover option. Custodians should warn beneficiaries, but they often do not.