Qualified Annuity into Inherited IRA
My father passed last month, and I was one of the beneficiaries named on his qualified annuity. I do not want to take the distribution and wanted to roll it into an Inherited IRA. The representative at Western Southern Life who holds the annuity said it cannot be rolled into an IRA, and they are not able to transfer to my brokerage firm. Can they refuse to do that, or actually CAN I roll the distribution from his IRA into an Inherited IRA? Thanks
Permalink Submitted by Alan Spross on Sun, 2010-02-07 18:17
Sorry to hear of your loss.
Please see att’d and scroll to the bottom of p 10 and continue to p 11:
http://www.jct.gov/x-85-08.pdf
This legislation was signed in Dec, 2008 and is referred to a WRERA.
This amendment of the Pension Protection Act makes transfers to either an inherited traditional IRA or inherited Roth IRA mandatory for plan years starting after 12/31/09. Therefore if this is a calendar year plan, the plan MUST offer you this direct transfer.
Note that your post first referred to a qualified annuity, which I assume means a 403b plan, but later you mentioned “his IRA”. Please clarify in the event that this is NOT a 403b plan.
Permalink Submitted by Sharon williams on Mon, 2010-02-08 04:10
Hi, Alan,
My dad’s qualified annuity was in an IRA, not 403b.
Thanks, again, for your help.
Sharon
Permalink Submitted by Al Fry on Mon, 2010-02-08 14:06
Perhaps the W & S rep was being specific in the fact that your father’s IRA cannot be “rolled” into an inherited IRA. However I cannot think of any reason the annuity death benefit (or your part of it) cannot be directly transferred to an inherited IRA. You may want to elevate the conversation to the rep’s supervisor. Whatever you do, do not agree to take a distribution to yourself, as once you do, it cannot be rolled to an inherited IRA.