Inheritied Roth IRA Conversion Plan
I had a client who passed away in 2010. She had a Roth IRA conversion account with (6) non-spouse designated beneficiaries. One of the beneficiaries is taking his portion and moving it to another financial institution. My broker dealer issued a check to this beneficiary in his name for his share of the Roth conversion IRA. Does it have to be a direct trustee to trustee transfer, or is he entitled to use the indirect 60 day rollover method by taking possesion of the check and depositing it into his own properly titled inherited roth conversion plan at the new institution?
John Nielsen
Permalink Submitted by Bruce Steiner on Fri, 2010-04-23 13:49
The 60-day rollover is only available for participants/IRA owners and their spouses.
Permalink Submitted by Alan Spross on Fri, 2010-04-23 20:04
That beneficiary should try to get the check voided and/or return it to the Roth custodian ASAP. They may or may not accept it, but it is worth a try. Then he could do the direct transfer that should have been done in the first place.