Multiple inherited IRA’s
A client is the non-spouse beneficiary of her father’s Government Thrift Savings Plan. She wants to complete a rollover of this plan to (not one but two) inherited IRA’s. However, the Thrift PLan only allows a direct rollover to one (1) inherited IRA. So my question is this…does the law permit us to rollover the Thrift plan to a single inherited IRA, then immediately transfer a portion of this inherited IRA to a second inherited IRA? Can we then combine the annual RMD’s from both inherited IRA’s but only take them out of one of them. Thanks for any feedback.
Permalink Submitted by Alan Spross on Fri, 2008-09-26 20:31
Yes, this would work. All transfers must be done directly. Aggregation of the RMD from the inherited IRAs is OK since both are inherited from the same decedent, as long as the life expectancy rule properly applies.