irs ruling
My question for you guys is what is the IRS ruling on non-spousal inherited IRA direct transfers from Insurance Co. to Insurance Co. (Annuity to Annuity)
My question for you guys is what is the IRS ruling on non-spousal inherited IRA direct transfers from Insurance Co. to Insurance Co. (Annuity to Annuity)
Permalink Submitted by Alan Spross on Tue, 2009-04-21 02:12
I am not aware of anything recent on this issue, but a direct transfer is the only way to change IRA custodians for a non spouse inherited IRA. However, there is no requirement for an IRA custodian to offer such a transfer. If a check is made out to the beneficiary, it is taxable and cannot be rolled over. For this reason, IRA owners with a non spouse beneficiary need to check what options their beneficiary will have.
A qualified retirement plan on the other hand will have to offer a direct transfer for a non spouse beneficiary to an inherited IRA for plan years starting after 12/31/09 .