60 day Rollover Rule
I have a client who just took a fairly large distribution from an Inherited IRA but now doesn’t need the money. Can the client use the 60 day rollover rule to put the money back?
I have a client who just took a fairly large distribution from an Inherited IRA but now doesn’t need the money. Can the client use the 60 day rollover rule to put the money back?
Permalink Submitted by Alan Spross on Mon, 2009-12-14 16:21
If the IRA was inherited from a spouse, they can roll over the funds to their own IRA. However, there are no rollovers permitted from a non spouse inherited IRA resulting in all distributions being irrevocably taxable. About all they can do is invest the money wisely or possibly use it to subsidize increasing contributions to their own retirement accounts.
Permalink Submitted by Allen Broyles on Mon, 2009-12-14 16:23
Thank you for your response. I had a hunch that was the case but wanted a second opinion.